Dear Members,
I have panel data, spanning between 2005 to 2015. I just want to measure the impact of reform that took place in 2010 on RiskLevel. Therefore, I want to interact my independent variables with the dependent variable, RiskLevel. Also, I want to get two coefficients (before and after) to compare the magnitude of change. I have used the following equation to examine the reform effect. Please note that, Reform is a dummy variable, 0 for pre-reform and 1 for post-reform; income is a continuous variable; and Size is a dummy variable 0 for small and 1 for big.
It gives me two values (pre- and post-reform) values for income, and Size. Is it okay to use '#' in this case to get two coefficients along with p-values for before and after reform by using a single equation?
Thanks in anticipation.
Tariqul
I have panel data, spanning between 2005 to 2015. I just want to measure the impact of reform that took place in 2010 on RiskLevel. Therefore, I want to interact my independent variables with the dependent variable, RiskLevel. Also, I want to get two coefficients (before and after) to compare the magnitude of change. I have used the following equation to examine the reform effect. Please note that, Reform is a dummy variable, 0 for pre-reform and 1 for post-reform; income is a continuous variable; and Size is a dummy variable 0 for small and 1 for big.
Code:
xtreg RiskLevel i.Reform#c.income i.Reform#i.Size, fe
Thanks in anticipation.
Tariqul
