Fama & French 12 industries classification in STATA

[Massimo Giudici]

Dear all,

I want to translate SIC codes into the 12 industries classified by Fama and French.

Does anyone know how to do it in STATA?

I also find this code (url in link) but i didn't understand if it is for STATA and how to make it working.

Thank you!

Here it is the classification from French's website:

1 NoDur Consumer NonDurables -- Food, Tobacco, Textiles, Apparel, Leather, Toys
0100-0999
2000-2399
2700-2749
2770-2799
3100-3199
3940-3989

2 Durbl Consumer Durables -- Cars, TV's, Furniture, Household Appliances
2500-2519
2590-2599
3630-3659
3710-3711
3714-3714
3716-3716
3750-3751
3792-3792
3900-3939
3990-3999

3 Manuf Manufacturing -- Machinery, Trucks, Planes, Off Furn, Paper, Com Printing
2520-2589
2600-2699
2750-2769
3000-3099
3200-3569
3580-3629
3700-3709
3712-3713
3715-3715
3717-3749
3752-3791
3793-3799
3830-3839
3860-3899

4 Enrgy Oil, Gas, and Coal Extraction and Products
1200-1399
2900-2999

5 Chems Chemicals and Allied Products
2800-2829
2840-2899

6 BusEq Business Equipment -- Computers, Software, and Electronic Equipment
3570-3579
3660-3692
3694-3699
3810-3829
7370-7379

7 Telcm Telephone and Television Transmission
4800-4899

8 Utils Utilities
4900-4949

9 Shops Wholesale, Retail, and Some Services (Laundries, Repair Shops)
5000-5999
7200-7299
7600-7699

10 Hlth Healthcare, Medical Equipment, and Drugs
2830-2839
3693-3693
3840-3859
8000-8099

11 Money Finance
6000-6999

12 Other Other -- Mines, Constr, BldMt, Trans, Hotels, Bus Serv, Entertainment

[Massimo Giudici]

I'm sorry, the link didn't work. Here it is the file attached

Thank you

[Clyde Schechter]

Definitely not Stata code in that file.

The task you face is tedious, but not at all difficult. It can be done with a long list of simple commands. You don't state whether the SIC code variable you already have is numeric (and formatted %04.0f) or a four character string variable. I'm going to assume the former--if it's the latter you can either -destring- it first, or put leading zeroes and quotes around all the corresponding numbers in the code below:

gen ff12_code = 12 // THE "OTHER" CATEGORY
replace ff12_code = 1 if inrange(sic_code, 100, 999) | inrange(sic_code, 2000, 2399) | inrange(sic_code, 2700, 2749)  //... etc.
// MORE ANNOYINGLY LONG COMMANDS LIKE THIS UNTIL YOU'RE DONE

Familiarize yourself with the -inrange()- function, which works with both strings and numeric variables.

You might well be able to paste the information from your original post into a do-file and go at it with some copy/paste and find/replace operations to turn it into the suggested code pretty quickly.

Or, if you have, and know how to use, a good scripting language, or maybe Python, you might be able to write a script that generates the code I suggested above directly from a text file containing the same information you showed in your original post. But unless you are really good at that, or find it fun, it's probably not worth the effort for a list of this size. (For that matter, there are other Stata approaches, such as making a crosswalk data file out of the information in your original post, using -joinby- and -keep-. But again, the creation of the crosswalk file and coding and checking the rest is probably more work than just slogging through writing the code.)

[Malcolm Wardlaw]

A program has already been written by Judson Caskey (now at UT Austin) for this exact purpose, additionally coding all of the industry categories 5, 10, 12, 17, 30, 38, 48 or 49.

https://sites.google.com/site/judson...data/ffind.ado

I've actually been using it since he was at UCLA. I modified the syntax slightly to use the "Generate" option rather than Judson's original "newvar" syntax, since I find it much more natural in the context of other stata commands, but other than that what I use is identical. Credit should go to Judson.

[Nick Cox]

Hyejin: Please start a new thread when you have a new question.