I want to categorize a variable on the basis of any set of cutpoints, not just percentiles. At the same time, since I have a panel, I want to do it for each point of time separately. In the following code and data, I categorize my firms on the basis of percentiles but when I use cutpoints(cpt) instead of nq() , it shows this error to me: option cutpoints() not allowed.
How can I categorize my firms in terms of cpt at each point of time? (Preferably, without using loops, because my data set is large)
How can I categorize my firms in terms of cpt at each point of time? (Preferably, without using loops, because my data set is large)
Code:
* sample generated data clear all input time firm value cpt 1 1 3 4 1 2 4 8 1 3 5 10 1 4 6 . 1 5 7 . 1 6 8 . 1 7 9 . 1 8 10 . 1 9 11 . 2 1 4 6 2 2 6 10 2 3 7 12 2 4 9 . 2 5 12 . 2 6 13 . 2 7 15 . end * finding quartiles for each time egen perc = xtile(value), by(time) nq(4)
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