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st: RE: Dropped Dummy Variables
From
Nick Cox <[email protected]>
To
"'[email protected]'" <[email protected]>
Subject
st: RE: Dropped Dummy Variables
Date
Wed, 6 Jun 2012 17:12:47 +0100
This isn't (obviously) a problem. Stata pointed out that what you offered as a model needs to be revised.
Nick
[email protected]
Jason Hecht
I created a set of country and sector dummy variables using the Data\Create or
change data\ etc. function.
Now the problem is that when I include, say, "USA" to denote a firm
located in the US, I get the following message:
note: USA dropped from div() because of collinearity
note: USA dropped because of collinearity
I am using the above dummy variables in an equation estimated with "xtabond."
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