Hi Everyone,
I am trying to estimate a model that has a dummy variable income (1=high income, 0= low income) and many country dummy variables. I am trying to do something like this:
var1= B1*var2 + B2*var3 + B3*income +B4*var2*income +B3*var3*income + B4*country1 + B5*country2 +...+ B6*country1*income + B7*country2*income +...
Of course, there are more than two country dummy variables. I was thinking that if I created a new variable country_inc=country*income, I could do something like this:
However, absorb only takes one variable. Are there options for getting around this?
Thank you!!
Krista
I am trying to estimate a model that has a dummy variable income (1=high income, 0= low income) and many country dummy variables. I am trying to do something like this:
var1= B1*var2 + B2*var3 + B3*income +B4*var2*income +B3*var3*income + B4*country1 + B5*country2 +...+ B6*country1*income + B7*country2*income +...
Of course, there are more than two country dummy variables. I was thinking that if I created a new variable country_inc=country*income, I could do something like this:
Code:
areg var1 var2 var3 income var2*income var3*income, absorb(country country_inc)
Thank you!!
Krista
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