Dear all,
This is not a stata coding question, but an econometric question.
My sample consists of firm year observations. My main explanatory variables are NET1, NET 2, my model looks like this
Y = NET1+ NET 2+control variables
Step 1. I conduct a panel regression analyses to test the effects of NET1, NET 2,
Step 2: I split my sample using the median value of NET1 into Hi_ NET1=1 (i.e., NET1> sample median) and Hi_ NET1 (i.e., NET1<= sample median), then run regression for Hi_ NET1=1 vs. 0 separately,
I want to run two regressions
Y = NET1+ NET 2+control variables if Hi_ NET1=1
Y = NET1+ NET 2+control variables if Hi_ NET1=0
I want to see whether the effect of NET2 is more or less important in each subsample.
My coauthor says I can’t include NET1 as an explanatory variable because I used it to partition the sample. Is that true?
Thanks,
This is not a stata coding question, but an econometric question.
My sample consists of firm year observations. My main explanatory variables are NET1, NET 2, my model looks like this
Y = NET1+ NET 2+control variables
Step 1. I conduct a panel regression analyses to test the effects of NET1, NET 2,
Step 2: I split my sample using the median value of NET1 into Hi_ NET1=1 (i.e., NET1> sample median) and Hi_ NET1 (i.e., NET1<= sample median), then run regression for Hi_ NET1=1 vs. 0 separately,
I want to run two regressions
Y = NET1+ NET 2+control variables if Hi_ NET1=1
Y = NET1+ NET 2+control variables if Hi_ NET1=0
I want to see whether the effect of NET2 is more or less important in each subsample.
My coauthor says I can’t include NET1 as an explanatory variable because I used it to partition the sample. Is that true?
Thanks,
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