Dear all
I need to take the standard deviation of every realization of annual sales growth over the past 3 years prior to year t for the firm ' i' as sales_volatilityit .
Assume Sales growth =(Salesgrowtht-Salesgrowtht-1)/Salesgrowtht-1
My question is how to generate sales_volatilityit ?
I used the following commands
**id stands for firm id**
Code:
gen sg= d.sales/l.sales label var sg "sales growth" ssc install tsegen tsegen sd_sg= rowsd(L(1/3).sg) label var sd_sg "sales_volatilityi"