Hello,my name is Zara.I am new to stata 13. I want an advice on how to generate dummy variables. I am doing a regression with panel data. I need to have 5 dummy variables. The variables are changeineps,changeindps. The dependent variable is abnormalreturn.
1. l(-,0) that is if earnings fall,it takes value 1 and if dividend is unchanged it takes a 0
2. l(+,-) that is if earnings increases, it takes value 1 and if dividend falls,it takes a 0
3. Similarly l(-,+)
4. l(+,0)
5.l(+,+)
Any explanation please on how to proceed?
1. l(-,0) that is if earnings fall,it takes value 1 and if dividend is unchanged it takes a 0
2. l(+,-) that is if earnings increases, it takes value 1 and if dividend falls,it takes a 0
3. Similarly l(-,+)
4. l(+,0)
5.l(+,+)
Any explanation please on how to proceed?