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From | Nick Cox <njcoxstata@gmail.com> |
To | statalist@hsphsun2.harvard.edu |
Subject | Re: st: Dependent ordered variable |
Date | Mon, 28 May 2012 09:07:40 +0100 |
This seems to be a question about an ordered _independent_ variable. (Like David Hoaglin and many others I don't use that term willingly, and here's another reason: it's so easy to confuse dependent and independent.) I guess willdly that there is a substantial literature in your field discussing how to turn credit rating into a numerical score. I guess this because even as an outsider it's easy to imagine dozens (hundreds, thousands...) of studies wanting to use credit rating as a predictor just like you. Whether that's a good idea I couldn't say, but my point is simply that there must be a literature on this. Expecting Statalist to stand in for a basic literature search is not a good idea. -xi3- is a user-written program from ?. From what I recall it can't add to what is possible with -xi:-. In fact, (1), (2) and (3) look essentially the same with the correction that credit rating would need to be handled as a series of indicator variables. (I don't willingly use the name dummy variable, so it's so often misinterpreted by non-statistical people.) Nick On Mon, May 28, 2012 at 8:52 AM, Tobias Bertschinger <tobias.bertschinger@uzh.ch> wrote: > I'm currently analyzing data which have an approximately normal distributed dependent variable Y (dependent_var) and I also have a couple of dependent variables. > I want to test the influence of credit ratings (ordered, e.g. AAA, AA+, AA, AA-...) as the main independent variable and a couple of control variables. > > What kind of test should i use? > Are there other tests than: > (1) include the credit rating as a dummy variable > (2) use xi: regress dependent_var i.credit_rating control_vars > (3) use xi3: regress dependent_var b.credit_rating control_vars > ? > > Thanks for your help! > * > * For searches and help try: > * http://www.stata.com/help.cgi?search > * http://www.stata.com/support/statalist/faq > * http://www.ats.ucla.edu/stat/stata/ * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/