how to deal with dummy variable in eviews

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she_lui
Posts: 1
Joined: Tue Aug 04, 2009 4:12 am

how to deal with dummy variable in eviews

Postby she_lui » Tue Aug 04, 2009 5:53 am

hello eviews users.
i'm a new user of eviews and i'm currently working on my research paper about municipal bonds.

i'm using municipal bonds as a dummy variable, 1 representing those provinces in the Philippines which issue municipal bonds and 0 for those that do not.
the catch here is that, i'm not sure on how to import the dummy variable in eviews. do in need to enter a code for eviews to recognize that the variable MB (municipal bonds) is a dummy variable, or eviews can automatically recognize it as one. Hope you can help me so that i can move on with my paper. Thank you very much!

theologos
Posts: 25
Joined: Wed Mar 11, 2009 6:09 am

Re: how to deal with dummy variable in eviews

Postby theologos » Tue Aug 04, 2009 6:12 am

Hello,

You should import your dummy variable as any other quantitative variable and then you may proceed to the estimation of the equation without any concern. (Of course if the dummy variable is the dependent one then binary models are appropriate)

Regards


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