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Re: st: mean centering


From   Aljar Meesters <[email protected]>
To   [email protected]
Subject   Re: st: mean centering
Date   Sun, 20 Jan 2013 16:15:22 +0100

Dear James,

I think that in general one centers variables to make the
interpretation of the marginal effects, conditional on the averages,
easier.
Centering variables in a pane should be based on the means of all the
observations of the particular variables and never by groups. If you
deducted the means of groups, you are carrying out a within
transformation, which will lead to a fixed effects model, which is
certainly not your goal of centering the variables.
You can do this by:
egen meanvar = mean(var)
gen centered_var = var - meanvar

best,

Aljar

2013/1/20 James Bernard <[email protected]>:
> Hi,
>
> I know that mean centering is not really a remedy for the resultant
> multidisciplinary among interaction effect variables. But, it has
> become a common practice. I have two questions:
>
> 1- In the case of panel data: should we deduct the mean of all the
> observations of that particular variables or should we do this by
> groups of observation?
>
> 2- is there any direct command in Stata for mean centering?
>
> Thanks,
> james
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