Dear All,
I use stata 9 and have a very simple question.
I have a categorical independent variable [Level of Investment] in an
unbalanced panel of firms. All firms fall within the three categories: Low,
Medium, and High investments. I code them as 1 or 0 for each category, which
are exclusive. If a firm has low level of investment then it canot have
medium or high.
My question is how do I explain to Stata that this is a categorical variable
and which of the three should be the base dummy?
