correct for structural break using dummy variable

[ak1234]

How do I create a dummy variable to correct for structural break within my data?
for example by looking at the resid graph shows a structural break in 1988 in my data

Data i have got given
c - constand
m
resid
r
y

kind regards
A

[startz]

series dummy = @year>1988

[ak1234]

Thanks but when i do this, the coefficients change. aren't they meant to stay them same?

Kind regards
A.

[startz]

Thanks but when i do this, the coefficients change. aren't they meant to stay them same?

Kind regards
A.

No, if the coefficients were going to stay the same what would you be correcting?

[ak1234]

Oh thats true. thanks!

Also when use the dummy variable for lets say 1988

in my data for the dummy variable 1988 = 1 and all the rest of the dates are = to 0

but then if i in my data for the dummy variable 1988= 0 and the rest of the dates = 1

the coefficients are different from when 1988 = 1

which is correct?

Kind Regards

A.

[startz]

Only the constant should have changed.