Dear Statalisters,
I have a cross section of firm-level data. If I plot the data
according to firm debt and growth opportunities, it seems that the
data is separating into 2 distinct regions. In the first region there
are firms with very low debt and high growth and in the second region
firms with very high debt and low growth. Is there a test to check
whether indeed there is separation in the data? Is there a way to
handle this with inregression?
Any suggestions would be appreciated.
Erasmo
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