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  • How to do a differential effect in Stata

    I have a binary variable : 0 = English company, 1 = French company.
    I have a second variable "profits".
    And a third variable "labor cost".

    How can I estimate the differential effect of the profit variations on both types of firms and on the cost of labor, in a regression.
    In other words, how, in stata, can I estimate a differential effect through a regression ?

  • #2
    James:
    I find your query a bit unclear.
    Do you have more than one dependent variable or else?
    Kind regards,
    Carlo
    (Stata 19.0)

    Comment


    • #3
      Well, I have 3 variables. One is binary, and the other two are dependent continuous variables. I want to regress and find the differential effect of the variations of the profits (of the two types of companies) on the labour cost.
      Is it more clear ?

      Comment


      • #4
        James:
        if you have two dependent continuos variables, you should take a look at -mvreg-.
        But in the last statement of your post you say the you want to
        find the differential effect of the variations of the profits (of the two types of companies) on the labour cost
        ; and that makes me think that you have one dependent variable only (labour cost).
        If that were the case, you may want to consider:
        Code:
        regress labour_cost c.profit##i.company
        Kind regards,
        Carlo
        (Stata 19.0)

        Comment

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