Creating Dummy Variable for Years

[Lucy Gordon]

Hello!
Can anyone please help me with the commands for creating a dummy variable?

Currently, I have time series data between the years 2004-2019 (financial data).

I want to create a dummy variable for the years (2008,2009,2010) = 1, all other years 0. This will represent the financial crisis years. I have 6 independent variables and hoping for the 7th to be my dummy variable.

Anyway,
I'm really stuck on how to do this and don't know what the commands are.

Thanks everyone!

[Felix Scholl]

This is something you can probably find in any introduction to Stata. There are different ways to do this, but the simplest version is:

generate financial_crisis = 0
replace financial_crisis = 1 if year==2008 | year==2009 | year==2010

I assumed that the variable that indicates the year is called "year".

[Joro Kolev]

What Felix says, or directly

generate financial_crisis = year==2008 | year==2009 | year==2010

or

generate financial_crisis = inlist(year,2008,2009,2010)

or

generate financial_crisis = inrange(year,2008,2010)

[Nick Cox]

See

https://www.stata.com/support/faqs/d...mmy-variables/

https://www.stata.com/support/faqs/d...rue-and-false/

https://www.stata-journal.com/articl...article=dm0099

[Lucy Gordon]

Thanks everyone. Appreciate the help. I'm new to Stata so I'm finding the easy things difficult atm.

[Lucy Gordon]

When I'm running a fixed effect regression, how does it work with the dummy variable and incorporating this into the analysis? I'm investigating the effects of the financial crisis so do i just run the regression as normal? Do I need to incorporate diffferent commands when using a dummy variable?

[Joro Kolev]

Generally fixed effects regression in Stata is done through either -xtreg, fe- (you need to xtset your data before), or through -areg, absorb(fixed_effect).

You need to tell us more about your data what you are trying to do.

When I'm running a fixed effect regression, how does it work with the dummy variable and incorporating this into the analysis? I'm investigating the effects of the financial crisis so do i just run the regression as normal? Do I need to incorporate diffferent commands when using a dummy variable?

[Lucy Gordon]

Basically I am exploring the effects of gender diversity on the board of directors of banks on financial performance. I have three dependent variables (financial performance indicators) and 6 independent variables. I want to further my analysis by incorporating this dummy variable that will enable me to explore the effect of female representation on the board of directors during the crisis years. I have never used stata prior to last week really. It's totally new and confusing. I have watched tutorials.

I have been told I need to run a random effects, fixed effects and a hausman test. Then accounting to endogeneity by lagging the dependent variables by one year. I also need to add year fixed effect and robust standard error. After this i was going to run a regression with the dummy variable...