How to merge 3 dummy variables

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GonzaloMR
Posts: 8
Joined: Sun Feb 16, 2020 10:49 am

How to merge 3 dummy variables

Postby GonzaloMR » Wed Mar 11, 2020 10:54 am

Hi there, I am currently working on panel data with 12 different panels. I have 3 independent dummy variables, which show a 1 if there is a rating upgrade for a bond, and a 0 if there is no announcement. Each dummy is for a different credit rating agency. How can I merge these dummies so that I have a fourth dummy variable made up of these 3?

thank you in advance for your help

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: How to merge 3 dummy variables

Postby startz » Wed Mar 11, 2020 10:56 am

How are you planning on defining the dummy? If any of the ratings is 1? If all?

GonzaloMR
Posts: 8
Joined: Sun Feb 16, 2020 10:49 am

Re: How to merge 3 dummy variables

Postby GonzaloMR » Wed Mar 11, 2020 11:01 am

Hi, i was thinking if any of the 3 has a one, that shows in the merged one. is that possible? thanks

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: How to merge 3 dummy variables

Postby startz » Wed Mar 11, 2020 11:13 am

Code: Select all

series dummyAll = dummy1 or dummy 2 or dummy3

GonzaloMR
Posts: 8
Joined: Sun Feb 16, 2020 10:49 am

Re: How to merge 3 dummy variables

Postby GonzaloMR » Wed Mar 11, 2020 12:18 pm

Thank you very much!


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