Creating dummy variables for panel data

[blanche812]

Dear all,

I am working on my dissertation and have problems on creating dummy variables in fixed effects model. My dependent variable is net income inequality (nii) and 3 explanatory variables: GDP(lggdp), GDP squared(lggdp2) and degree of openess(openess). The balanced panel data covers 13 countires in the period of 1979-2009. How can I generate a dummy variable which takes the value 1 if a fiscal consolidation is undertaken in the UK in year 1979,1980,1981,1982 and 1994-1999 and is undertaken in Sweden in year 1984,1993-1998, takes the value 0 otherwise ? or do I have to create two dummy variables seperatley for 2 countries?

I attached my workfile below. Hope my questions make sense and someone could help.

Many thanks :)

workfile1.wf1

(36.11 KiB) Downloaded 360 times

[EViews Gareth]

Code: Select all

smpl @all series dum=0 smpl 1979 1982 1994 1999 if country="GBR" dum=1 smpl 1984 1984 1993 1998 if country="SWE" dum=1 smpl @all

[blanche812]

Thanks a lot for your reply.
I tried to include more countries and years one by one in the dummy vaiable. But when I entered the last line, it returned an " Error in sample: illegal date IF" message. What does it mean and how can I continue to enter more lines?

smpl @all
series dum=0
smpl 1979 1982 1994 1995 1996 1997 1998 1999 if country="GBR"
dum=1
smpl 1984 1984 1993 1994 1995 1996 1997 1998 if country="SWE"
dum=1
smpl 1983 1984 1989 1990 1992 1993 1994 1995 1996 1997 if country="ESP"
dum=1
smpl 1992 1993 1994 1995 1996 1997 if country="FIN"
dum=1
smpl 1983 1984 1985 1986 1995 if country="DNK"

Any help would be greatly appreciated :) .

[EViews Gareth]

Years need to be entered in pairs. You cannot have an odd number of years.