Hello everyone,
First of all: I don't have much experience with Stata.
I am currently writing my master's thesis on the impact of VAT changes on a company's EBIT. I have a panel dataset with annual company data from 2006 to 2019 for a total of 13 countries. I want to create a control group of countries that are close to the country that changes the VAT rate. What is the best way to do this? Does it make sense to create a dummy variable that takes the value of 1 for e.g. Spain, Portugal, France. This would then be the border dummy for Spain, which also includes the border countries Portugal and France.
I would like to carry out the following regression at the end:
Thank you in Advance!
Best regards
Maren
First of all: I don't have much experience with Stata.
I am currently writing my master's thesis on the impact of VAT changes on a company's EBIT. I have a panel dataset with annual company data from 2006 to 2019 for a total of 13 countries. I want to create a control group of countries that are close to the country that changes the VAT rate. What is the best way to do this? Does it make sense to create a dummy variable that takes the value of 1 for e.g. Spain, Portugal, France. This would then be the border dummy for Spain, which also includes the border countries Portugal and France.
I would like to carry out the following regression at the end:
Code:
global border i.border_PRT i.border_ESP i.border_FRA i.border_BEL i.border_NLD i.border_LUX i.border_DEU i.border_AUT i.border_ITA i.border_SVN i.border_SVK i.border_EST i.border_FIN reg D.ln_ebit drate D.corp_rate D.unemp D.gdp_gr i.year#($border), vce(cluster gvkey)
Best regards
Maren
