st: Re: Creating a Peer-Variable excluding the focal entity

[Houdou Basse Mama <hbassemama@escpeurope.eu>]

Many thanks Nick for your guidance.

I would like to specify my question. Suppose, you have 7 firms belonging to two different sectors 1 and 2. Each firm-year observation is associated with a media visibility measure. What I want ot compute is the variable "Peer Visibility" as I did it for Firm 1 over the period 2009-2013. This latter variable is industry-year computed and varies over the 7 firms. I append an example below:

firm	year	sector	Visibility	Peer Visibility
1	2009	1	4.2		4.7
1	2010	1	9.7		9.6
1	2011	1	5.2		4.2
1	2012	1	9.3		9.5
1	2013	1	6.1		5
2	2009	1	4.6	
2	2010	1	9.4	
2	2011	1	4.6	
2	2012	1	9.3	
2	2013	1	4.9	
3	2009	1	4.8	
3	2010	1	9.8	
3	2011	1	3.8	
3	2012	1	9.7	
3	2013	1	5.1	
4	2009	2	5.2	
4	2010	2	9.3	
4	2011	2	3.6	
4	2012	2	9.2	
4	2013	2	6.3	
5	2009	2	7	
5	2010	2	9.1	
5	2011	2	3.5	
5	2012	2	9.2	
5	2013	2	7.3	
6	2009	2	6.9	
6	2010	2	9.5	
6	2011	2	4.4	
6	2012	2	9.1	
6	2013	2	7	
7	2009	2	6.9	
7	2010	2	9.7	
7	2011	2	4.6	
7	2012	2	9	
7	2013	2	6.8	

I hope I could specify the issue. Thanks in advance for your help
Houdou


----- Ursprüngliche Mail -----
Von: "Houdou Basse Mama" <hbassemama@escpeurope.eu>
An: statalist@hsphsun2.harvard.edu
Gesendet: Dienstag, 25. März 2014 11:33:10
Betreff: Creating a Peer-Variable excluding the focal entity

Dear Statalist,

Could you please provide assistance. I attempt (with no success) to create a peer group variable each period excluding a focal firm j. Suppose I want to regress a firm's outcome (y_jit) on a vector X that contains two variables. The outcome y_jit should be regressed on X_jit and X_-jit, where the former varibale denotes the a firm-specific determinant of Y_jit and a peer group counterpart, respectively. I need to construct the peer group variable (X_-jit) that excludes the firm itself. 

Assume a variable "visibility" that is firm-specific. I want to compute a peer-counterpart for this firm-specific variable using industry affiliation as peer group. Call this new variable "peer_visibility". The computed variable should be industry-year computed.

I have read the points made in the thread in statalist since October through December 2013 but still cannot solve the problem. Many thanks in advance for your help.

Best and many thanks for your time

Houdou
ESCP Europe Berlin Campus

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