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Split variable with dummies

Posted: Mon Sep 21, 2009 1:22 am
by margarita
Hi all,

within my long regression I have one variable "itraxx", which I want to split in pre and post crisis with a dummy. How do I enter this in eviews? This is my very simplified regression:

spread c itraxx

If I want to split it, can I just enter this:

spread c itraxx*precrisis itraxx*crisis

so I get the relation between the itraxx till sept '07 (pre-crisis) and spread, ánd a second relation between itraxx during crisis (after sept 2007) and spread, or how do I have to insert this equation? Thank you for your help!

Re: Split variable with dummies

Posted: Mon Sep 21, 2009 6:45 am
by startz
That's fine, although you shold consider whether you also want to allow separate intercepts, as in

Code: Select all

spread itraxx*precrisis itraxx*crisis precrisis crisis