I am running a probit regression with one of my explanatory variables being the lag of my dependent variable. As is the case with my dependent variable, the lag variable is also binary. My question is whether I should enter it as a factor variable in Stata or whether I should just enter it without specifying that is a dummy variable.
I was confused as to whether lagged variables created by Stata using the
should be introduced as factor variables as is the case with normal binary variables.
Many thanks in advance.
I was confused as to whether lagged variables created by Stata using the
Code:
gen lagvar1= l.depvar
Many thanks in advance.
