Panel data including interest yearly for each city

[Adam Klaas]

I was wondering if I had to include interest which is yearly calculated for Holland to give each city each year the interest rate.

So for example:
Year 1 interest rate=2%
Year 2 interest rate=3%
City 1 in year 1:2%
City 2 in year 2:3%
Is this the correct way?

[Carlo Lazzaro]

Adam:
your should -reshapre- your data in -long- format (unless they are laid out this way already), as most of the Stata commands work at their best in -long- format.
As you have a panel dataset, you shoud have a variable -city-, (that I assume to be your -panelid- or the cross-sectional dimension of your dataset) a variable -year- (which is the -timevar- or the time-series dimension of your panel dataset) and a variable -interest_rate- (you surely have other predictors and controls in the right-hand side of your regression equation):

set obs 2
g id_city=1
g year=2020 + _n
g interest_rate=0.02 in 1
replace interest_rate=0.03 in 2
expand 2
replace id=2 in 3/4
list
     +---------------------------+
     | id_city   year   intere~e |
     |---------------------------|
  1. |       1   2021        .02 |
  2. |       1   2022        .03 |
  3. |       2   2021        .02 |
  4. |       2   2022        .03 |
     +---------------------------+

.

[Adam Klaas]

Adam:
your should -reshapre- your data in -long- format (unless they are laid out this way already), as most of the Stata commands work at their best in -long- format.
As you have a panel dataset, you shoud have a variable -city-, (that I assume to be your -panelid- or the cross-sectional dimension of your dataset) a variable -year- (which is the -timevar- or the time-series dimension of your panel dataset) and a variable -interest_rate- (you surely have other predictors and controls in the right-hand side of your regression equation):

set obs 2
g id_city=1
g year=2020 + _n
g interest_rate=0.02 in 1
replace interest_rate=0.03 in 2
expand 2
replace id=2 in 3/4
list
+---------------------------+
| id_city year intere~e |
|---------------------------|
1. | 1 2021 .02 |
2. | 1 2022 .03 |
3. | 2 2021 .02 |
4. | 2 2022 .03 |
+---------------------------+

.

Thanks a lot for your time to answer my question.
So in my data set this would be correct?

* Example generated by -dataex-. For more info, type help dataex
clear
input float GM_code int Year double Interest
1 2000      5.405
1 2001 4.95833333
1 2002       4.89
1 2003      4.095
1 2004      4.095
1 2005 3.37416667
1 2006 3.78083333
1 2007 4.28666667
1 2008 4.22666667
1 2009 3.68666667
1 2010 2.99166667
1 2011 2.98916667
1 2012 1.93416667
1 2013 1.96083333
1 2014      1.455
1 2015  .69083333
1 2016      .2925
1 2017      .5225
1 2018  .57666667
1 2019       -.07
1 2020  -.3766667
2 2000      5.405
2 2001 4.95833333
2 2002       4.89
2 2003      4.095
2 2004      4.095
2 2005 3.37416667
2 2006 3.78083333
2 2007 4.28666667
2 2008 4.22666667
2 2009 3.68666667
2 2010 2.99166667
2 2011 2.98916667
2 2012 1.93416667
2 2013 1.96083333
2 2014      1.455
2 2015  .69083333
2 2016      .2925
2 2017      .5225
2 2018  .57666667
2 2019       -.07
2 2020  -.3766667
3 2000      5.405
3 2001 4.95833333
3 2002       4.89
3 2003      4.095
3 2004      4.095
3 2005 3.37416667
3 2006 3.78083333
3 2007 4.28666667
3 2008 4.22666667
3 2009 3.68666667
3 2010 2.99166667
3 2011 2.98916667
3 2012 1.93416667
3 2013 1.96083333
3 2014      1.455
3 2015  .69083333
3 2016      .2925
3 2017      .5225
3 2018  .57666667
3 2019       -.07
3 2020  -.3766667
4 2000      5.405
4 2001 4.95833333
4 2002       4.89
4 2003      4.095
4 2004      4.095
4 2005 3.37416667
4 2006 3.78083333
4 2007 4.28666667
4 2008 4.22666667
4 2009 3.68666667
4 2010 2.99166667
4 2011 2.98916667
4 2012 1.93416667
4 2013 1.96083333
4 2014      1.455
4 2015  .69083333
4 2016      .2925
4 2017      .5225
4 2018  .57666667
4 2019       -.07
4 2020  -.3766667
5 2000      5.405
5 2001 4.95833333
5 2002       4.89
5 2003      4.095
5 2004      4.095
5 2005 3.37416667
5 2006 3.78083333
5 2007 4.28666667
5 2008 4.22666667
5 2009 3.68666667
5 2010 2.99166667
5 2011 2.98916667
5 2012 1.93416667
5 2013 1.96083333
5 2014      1.455
5 2015  .69083333
end

[Carlo Lazzaro]

Adam:
if -GM_code- is your -panelid- your dataset is in -long- format and you'll have no problem in running your regression.

[Adam Klaas]

Adam:
if -GM_code- is your -panelid- your dataset is in -long- format and you'll have no problem in running your regression.

Thanks a lot!