Programming the statistical procedures from SAS

Independent variables

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Contributor
Posts: 69

Independent variables

Hello,

 

I need your advice,

 

I have 3 groups in my research: Firms that founded on 1930 (FF - dummy variable), Firms that founded on 1970 (FNF - dummy variable), and other firms.

I also have the continous variables that describe the largest ownership in the relevant firm, FOWN for FF firm and FNFOWN for FNF firms.

If I want to check the ownership impact on performance, should I run regression as:

proc reg data=sasuser.sasfile;

model performance = FOWN FNFOWN ;

run;

 

Or should I create a new variable named, for example, OWN, that reflect that largest owners in each firm but the code will be:

proc reg data=sasuser.sasfile;

model performance = OWN*FF OWN*FNF ; (I will create a new variable for each duplicated variables)

run;

 

Thanks for your help!!!!

Super Contributor
Posts: 473

Re: Independent variables

I am assuming that your dummy variables are coded as 0/1 as PROC REG does not support a class statement.

 

I would recommed your first choice. You can also specify multiple model statements like this

 

proc reg data=sasuser.sasfile;
    model performance = FOWN;
    model performance = FNFOWN;
run;
Contributor
Posts: 69

Re: Independent variables

Thanks for your answer

But my question is what is the difference between the two options I mentioned?

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