guosuwenchen 发表于 2010-3-21 11:15 
看了一篇文章,用的横截面数据,作OLS估计,研究各国人均收入和国际贸易之间的关系。被解释变量为人均收入GNI 解释变量是贸易量Trade, 另外还有几个控制变量,最后加了一项Regional Dummy,感觉不像是一般的取值为0和1的虚拟变量,文章里说Regional Dummy是为了控制区域特征(Regional Characteristic),请问这里的Regional Dummy和我们一般所说的表示变量属性的虚拟变量有什么区别?另外,文章也没有说对Regional Dummy怎么赋值,请问是怎么赋值的呢
It is the same. In general, dummy variable can have several ways to designed it, then the interpretation may be different. So it is not unique. Usually it is defined as in this case,
dummy_r(i)=1 if it is belong to region i,
dummy_r(i)=0 otherwise