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From |
Nick Cox <[email protected]> |

To |
[email protected] |

Subject |
Re: st: Creating a dummy variable under certain conditions |

Date |
Sat, 2 Jun 2012 13:47:46 +0100 |

Use the -sum()- function to produce cumulative sums: bysort gvkey (date) : gen cuviol = sum(viol) Then the previous four observations were 0 if and only if the cumulative sum did not change over that interval. This gives you a way of getting your indicator variable: by gvkey : gen myindicator = cuviol[_n-1] == cuviol[_n-4] Nick (on behalf of SAND*) * Society for the Abolition of the Name Dummy On Sat, Jun 2, 2012 at 1:06 PM, sebas nicaise <[email protected]> wrote: > I am struggeling with creating a new dummy variable. I have a very large (unbalanced) panel dataset that looks like this: > > > > date gvkey viol > 1997q1 1021 0 > 1997q2 1021 0 > 1997q3 1021 0 > 1997q4 1021 0 > 1998q1 1021 1 > 1998q2 1021 0 > 1998q3 1021 0 > 1998q4 1021 1 > 1999q1 1021 0 > > 1999q2 1021 0 > > 1999q3 1021 0 > 1999q2 1023 0 > 1999q3 1023 1 > 1999q4 1023 0 > 2000q1 1023 0 > 2000q2 1023 1 > > > Where date is calender quarter, gvkey is the company identifier and viol a dummy which equals 1 if the firm is in violation of a covenant in a private debt contract. > > > > The problem is that I have to create a new dummy variable ( new violation) which meets certain conditions. > > The new violation dummy is only allowed to be 1 if in the previous 4 quarters of a certain company (gvkey) is 0. > > > > This means for example that: > > > > date gvkey viol Newviolation > 1997q1 1021 0 0 > 1997q2 1021 0 0 > 1997q3 1021 0 0 > 1997q4 1021 0 0 > 1998q1 1021 1 1 > 1998q2 1021 0 0 > 1998q3 1021 0 0 > 1998q4 1021 1 0 > 1999q1 1021 0 0 > > 1999q2 1021 0 0 > > 1999q3 1021 0 0 > 1999q2 1023 0 0 > 1999q3 1023 1 0 > 1999q4 1023 0 0 > 2000q1 1023 0 0 > 2000q2 1023 1 0 > > > > I do not know how to tell Stata to create this variable, Hope someone is so kind to help me. * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**References**:**st: Creating a dummy variable under certain conditions***From:*sebas nicaise <[email protected]>

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