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dummy variables in panel data

Posted: Sun Oct 26, 2014 11:58 am
by franta311
Hi Guys,

I am looking into variables that influence sovereign debt maturity choices. I have 12 independent variables (gdp per capita, inflation rate, corruption, etc..) and dependent variable - debt maturity. I analyze 42 countries in years 2000 - 2013.

Q: When running Fixed Effects regression in Eviews, do I have to create dummy variables for all 42 countries? if yes, how do I do it and why is it beneficial?

Thanks a lot!

Best

F.

Re: dummy variables in panel data

Posted: Sun Oct 26, 2014 2:43 pm
by EViews Gareth
No, just choose the fixed effects option and EViews will do the dummies for you.

Re: dummy variables in panel data

Posted: Mon Oct 27, 2014 2:33 am
by franta311
Thanks!