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From |
Abhimanyu Arora <abhimanyu.arora1987@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

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

Date |
Sat, 2 Jun 2012 16:34:41 +0200 |

Sebas, Adding to Nick's comment, did you not -xtset- the data? You also have an option of bys id_var: command, otherwise On Sat, Jun 2, 2012 at 4:29 PM, Nick Cox <njcoxstata@gmail.com> wrote: > You will probably want to exclude or ignore the first few observations > in each panel or -replace- it with missing. Otherwise, what's wrong? > > Abhimanyu's slip has already been corrected in this thread, as below. > > Nick > > On Sat, Jun 2, 2012 at 3:12 PM, sebas nicaise <sebasnicaise@hotmail.com> wrote: > >> Thank you for the quick replys. >> >> However, the suggested solutions did not give the right answer. >> >> Nick, your solution gives me way too many 1's. I do think the first step with the cusum was the right way to go. >> >> Abhimanyu, your solution does not distinquish between the id's, the calculation has to start over for every gvkey. >> >> >> Hope you can have another look at it, I will also try to work with the suggestions you gave me. >> >>> From: abhimanyu.arora1987@gmail.com >>> To: statalist@hsphsun2.harvard.edu >>> >>> Thanks Nick, yes. >>> But I would go for your solution which would be better in case he had >>> a longer lag. >>> >>> On Sat, Jun 2, 2012 at 2:56 PM, Nick Cox <njcoxstata@gmail.com> wrote: >>> > This looks OK as long as you substitute -viol- for -gvkey-. The >>> > previous values concerned are for -viol-, not -gvkey-. >>> > >>> > Nick >>> > >>> > On Sat, Jun 2, 2012 at 1:51 PM, Abhimanyu Arora >>> > <abhimanyu.arora1987@gmail.com> wrote: >>> > >>> >> Try this if your data is -xtset-ted >>> >> gen new_viol_dummy=L.gvkey+L2.gvkey+L3.gvkey+L4.gvkey==0 >>> > >>> >> On Sat, Jun 2, 2012 at 2:06 PM, sebas nicaise <sebasnicaise@hotmail.com> >>> >> >>> >>> 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/ >>> >>> * >>> * 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/ >> * >> * 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/ > > * > * 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/ * * 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/

**Follow-Ups**:**RE: st: Creating a dummy variable under certain conditions***From:*sebas nicaise <sebasnicaise@hotmail.com>

**References**:**st: Creating a dummy variable under certain conditions***From:*sebas nicaise <sebasnicaise@hotmail.com>

**Fwd: st: Creating a dummy variable under certain conditions***From:*Abhimanyu Arora <abhimanyu.arora1987@gmail.com>

**Re: st: Creating a dummy variable under certain conditions***From:*Nick Cox <njcoxstata@gmail.com>

**Re: st: Creating a dummy variable under certain conditions***From:*Abhimanyu Arora <abhimanyu.arora1987@gmail.com>

**RE: st: Creating a dummy variable under certain conditions***From:*sebas nicaise <sebasnicaise@hotmail.com>

**Re: st: Creating a dummy variable under certain conditions***From:*Nick Cox <njcoxstata@gmail.com>

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