Models - dummies and trends

[ak1234]

Hi,

When making a model better can I use both dummy and trend in one model? - as this would then correct for structural break within my data also the trend will allow my model to then have the correct functional form.

I have already created separate models one including a dummy and the other a trend.

But I have to choose only two best long run models and the dummy model on its own does not give me the correct functional form.

Kind regards

A.

[startz]

Yes.

[ak1234]

thank you.

A.

[asiajade747]

Hi Guys,
Hoping someone can help me...can you model a dummy variable to be case sensitive or does it have to be done manually? I want to create a dummy to correspond with my data sets increases and decreases.For instance, if the data increases it will be 0 and it will only be 1 if there are decreases year on year. How can I word this command?

[startz]

Code: Select all

series dummy = @recode(x>x(-1),0,1)