Hello guys :)
I am a beginner with Eviews 10 and would very much appreciate if anyone could help with an issue related to creating an independent variable.
I am using the software to determine how different factors influence the price of a bitcoin. There's a classical linear regression model with a number of independent variables, representing weekly data from Google Trends, S&P 500 , Dow Jones, dollar/euro exchange rate etc.
However, one of the independent variables is coded data with bitcoin-related news. I have gathered data for a certain period and labeled bitcoin news for each day as 1 if they're positive, -1 if they're negative, and 0 if there were no news on that day.
The question is, how do I use this type of data in Eviews to test if this variable has any effect on the bitcoin prices? Should I create a dummy variable? If so, how?
Also, does it make sense to keep this variable along with the others in the regression, given different frequencies of data (daily data for the news, weekly for the other variables), or should I split into two regressions?
Apologies for all the questions, but I truly am frustrated
Creating binary independent variable
Moderators: EViews Gareth, EViews Jason, EViews Steve, EViews Moderator
-
- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Creating binary independent variable
You might want to create two dummies to include
Code: Select all
series positiveDummy = news=1
series negativeDummy = news=-1
Who is online
Users browsing this forum: No registered users and 16 guests