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dummy variables in an LA-VAR approach

Posted: Mon Feb 14, 2011 6:15 pm
by sophieb
hi all,
so here is my problem, I'm trying to estimate the determinants of stock prices by using an LA-VAR approach. The problem is my sample. I wanted to do two regressions with two different type of companies, but there is not enough companies of each type to do that... so I was wondering if it is possible to include a dummy variable in my regression to take into account the difference between companies..
thank you for you help,
Sincerely,
Sophie BUIGUES