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st: Dropped Dummy Variables
From
Jason Hecht <[email protected]>
To
[email protected]
Subject
st: Dropped Dummy Variables
Date
Wed, 6 Jun 2012 11:29:10 -0400
I created a set of country and sector dummy variables using the Data\Create or
change data\ etc. function.
Now the problem is that when I include, say, "USA" to denote a firm
located in the US, I get the following message:
note: USA dropped from div() because of collinearity
note: USA dropped because of collinearity
I am using the above dummy variables in an equation estimated with "xtabond."
Thanks so much for your time.
Jason
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