Hello everyone,
We are investigating the effects of an newly implemented law on the financial markets. We are going to conduct a difference-in-difference method. FYI We are beginners in Stata so please excuse me if our questions are very basic.
Our treatment group is: investment banks in the EU.
Control group: investment banks in the US.
Pre period: from Q1 2014 to Q4 2017
Post period: Q1 2018 to Q3 2019
We have panel data that looks like this (numbers in millions)
Should we use xtreg or reg when we want to include the individual effects of each country? I have coded country as "encode values labels from string variable".
Would this be an appropriate code for DID?
Code: reg netinc treat post interaction
In order to create panel data we have done the following:
xtset name quarter
panel variable: name (strongly balanced)
time variable: quarter, 1 to 23
delta: 1 unit
Does this make sense?
Another question. We want to include the variable "age" which is years since the company's IPO, but as you can see we only have age listed once in the first period for each company. It is the age of each company in 2019 and we want stata to understand that the age is not connected to quarters. How can we do this?
Any help would be greatly appreciated!
Best regards
Ida
We are investigating the effects of an newly implemented law on the financial markets. We are going to conduct a difference-in-difference method. FYI We are beginners in Stata so please excuse me if our questions are very basic.
Our treatment group is: investment banks in the EU.
Control group: investment banks in the US.
Pre period: from Q1 2014 to Q4 2017
Post period: Q1 2018 to Q3 2019
We have panel data that looks like this (numbers in millions)
Should we use xtreg or reg when we want to include the individual effects of each country? I have coded country as "encode values labels from string variable".
Would this be an appropriate code for DID?
Code: reg netinc treat post interaction
In order to create panel data we have done the following:
xtset name quarter
panel variable: name (strongly balanced)
time variable: quarter, 1 to 23
delta: 1 unit
Does this make sense?
Another question. We want to include the variable "age" which is years since the company's IPO, but as you can see we only have age listed once in the first period for each company. It is the age of each company in 2019 and we want stata to understand that the age is not connected to quarters. How can we do this?
Any help would be greatly appreciated!
Best regards
Ida
