Slope Dummy!

[jrh28]

I am using Eviews 6 to try and estimate the following panel model

Δ ln (pay) = γi + αit + β(performance)it + λD(Research & Development)it + εit

Which measures CEO pay against performance (abnormal returns) for firms in the Biotechnology and Retail sector . I have a slope dummy (D) with which I want to pick up the effects of R&D on CEO pay (takes a value of 1 for Biotech firms and a value of 0 for retail firms).

I have the variables in Eviews but I have no idea how to run a slope dummy? I know how to run an intercept dummy (pretty simple) but not a slope dummy.

Help would be greatly appreciated,

Cheers

[startz]

Enter

Code: Select all

dummy*performance

into the regression.