Dummy variables are a common econometric tool, whether working with time series, cross-sectional, or panel data. Unfortunately, raw datasets rarely come formatted with dummy variables that are regression ready.
In today’s blog, we explore several options for creating dummy variables from categorical data in GAUSS, including:

- Creating dummy variables from a file using formula strings.
- Creating dummy variables from an existing vector of categorical data.
- Creating dummy variables from an existing vector of continuous variables.