Hello
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. Am relatively new to Stata. Would anyone know how I can best tackle this problem? I would like to create a prudential policy index that takes on three different values: loosening actions, tightening actions, or no change (1 or 0). The aim is to link this index to growth by assuming that only changes in prudential policy can affect real growth. The index should be a sum of all prudential policy actions for each of the 10 categories for tightening and loosening actions considering a five-year horizon for 15 countries over the period 1990 - 2020. So far I have 1,048,510 observations.
PPi,t= 1/5 *((1+ T)/(1+E))
2. As per the literature, the descriptive statistics are calculated to show the impact of the policy actions on output growth. Ie when examining the Prudential Policy net tightening, the author differentiates the impact of cyclical, resilience, and capital-based prudential actions.
Literature:
https://papers.ssrn.com/sol3/papers....act_id=3302300
Any help would be much appreciated. Thanks! The dataset looks like this:
input str11 year byte c_id str23 country byte(conservation_t capital_t lvr_t loanr_t ltv_t dsti_t liquidity_t lfx_t sifi_t ot_t conservation_l capital_l lvr_l loanr_l ltv_l dsti_l liquidity_l lfx_l sifi_l ot_l)
"1990" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1991" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1992" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1993" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1994" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1995" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1996" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1997" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1998" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1999" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2000" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2001" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2002" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2003" 1 "Angola" 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
"2004" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2005" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2006" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2007" 1 "Angola" 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
"2008" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2009" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2010" 1 "Angola" 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
"2011" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2012" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2013" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2014" 1 "Angola" 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2015" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2016" 1 "Angola" 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0
"2017" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2018" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2019" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2020" 1 "Angola" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1990" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1991" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1992" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1993" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1994" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1995" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1996" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1997" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1998" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1999" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2000" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2001" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2002" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2003" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2004" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2005" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2006" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2007" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2008" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2009" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2010" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2011" 2 "Benin" 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
"2012" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2013" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2014" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2015" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2016" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2017" 2 "Benin" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2018" 2 "Benin" 1 1 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0
"2019" 2 "Benin" 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2020" 2 "Benin" 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0
"1990" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1991" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1992" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1993" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1994" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1995" 3 "Botswana" 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0
"1996" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1997" 3 "Botswana" 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
"1998" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1999" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2000" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2001" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2002" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2003" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2004" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2005" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2006" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2007" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2008" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2009" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2010" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2011" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2012" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2013" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2014" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2015" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2016" 3 "Botswana" 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0
"2017" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2018" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2019" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"2020" 3 "Botswana" 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0
"1990" 4 "CongoDemocraticRepublic" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1991" 4 "CongoDemocraticRepublic" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1992" 4 "CongoDemocraticRepublic" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1993" 4 "CongoDemocraticRepublic" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1994" 4 "CongoDemocraticRepublic" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1995" 4 "CongoDemocraticRepublic" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
"1996" 4 "CongoDemocraticRepublic" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
end