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oh, and the reason why I ask this is because I don't understand why the p-value is different if you estimate 'empl sales rd*sector0' so just without the rd and sector0 separately...

Thanks for your reply! So, now when I use the slope dummies I have another problem/question. I entered the estimation: 'empl sales rd sector0 rd*sector0 c' now I do get some plausible results, however somebody told me there is a chance for multicollinearity now. Do you perhaps know how I can test fo...

Dear all, With Eviews 5, I am trying to perform a regression on a model which analyses the effect of (among others) the R&D intensity (R&D/Sales) on firmlevel employment. I'd like to know whether or not the industry (sector) affects this. So I created a couple of dummy variables like 'sector...