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

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

Thanks Nick!
Sorry, my previous post contains a typo: I mean sector #1 NOT sector #2.

Corrected statement: The peers for firm 1 are firms 2 and 3; the peers for firms 2 are 1 and 3 while the peers for company 3 are 1 and 2. Actually, companies 1, 2 and 3 are belonging to the same industry (sector #1). So, as an example the average "visibility" of the peers during the year 2009 for Firm 1 is equal to the average of 4.6 (firm 2) and 4.8 (firm 3). 
A tentative definition of the word peer I use in my question is: the other firms in the same industry (i.e. sector) at the same time period.

Thanks and a nice evening
Houdou 

----- Ursprüngliche Mail -----
Von: "Houdou Basse Mama" <hbassemama@escpeurope.eu>
An: statalist@hsphsun2.harvard.edu
Gesendet: Mittwoch, 26. März 2014 15:46:20
Betreff: Re: Creating a Peer-Variable excluding the focal entity

Dear Nick
I have no pretention to compete. In contrast, I am searching for guidance. 
I computed manually (in Excel) the 4.7 as the mean of 4.6 and 4.8 that respectively pertain to firm 2 and 3 for the year 2009. Both firms 2 and 3 belong to sector (industry) #2. My question is: Can a Stata algorithm help me efficiently perform this task for a broader sample?
I am sorry for the misunderstanding if you feel like your guidance to be misused.

Best
Houdou

----- Ursprüngliche Mail -----
Von: "Houdou Basse Mama" <hbassemama@escpeurope.eu>
An: statalist@hsphsun2.harvard.edu
Gesendet: Mittwoch, 26. März 2014 15:18:36
Betreff: Re: Creating a Peer-Variable excluding the focal entity

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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