Hello everyone,
I'm currently working on cross-sectional regression analyses involving 100 firms during the sample period in 2020. The dependent variable, which measures the quality of compliance, has a range from 0 to 20, where 0 indicates the lowest compliance and 20 signifies the highest compliance. My independent variables include both continuous and dummy variables.
I'm seeking advice on which regression model would be more suitable for these cross-sectional regressions.
01. My initial thought was to use Ordinary Least Squares (OLS) with a simple command like "reg dependent independent controls."
02. However, given that one could argue my dependent variable is a categorical variable (as described above), some may suggest that logistic regression might be a more appropriate model. This would involve a command along the lines of "logit dependent independent controls."
Your insights on this matter would be greatly appreciated
Thank you.
I'm currently working on cross-sectional regression analyses involving 100 firms during the sample period in 2020. The dependent variable, which measures the quality of compliance, has a range from 0 to 20, where 0 indicates the lowest compliance and 20 signifies the highest compliance. My independent variables include both continuous and dummy variables.
I'm seeking advice on which regression model would be more suitable for these cross-sectional regressions.
01. My initial thought was to use Ordinary Least Squares (OLS) with a simple command like "reg dependent independent controls."
02. However, given that one could argue my dependent variable is a categorical variable (as described above), some may suggest that logistic regression might be a more appropriate model. This would involve a command along the lines of "logit dependent independent controls."
Your insights on this matter would be greatly appreciated
Thank you.
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