[Gretl-users] Re: Categorical variable assignment

This is not a software issue, but since it has been asked: You can think of creating three separate categorical variables, one for each type of school. Not binary variables (0,1), but each taking the value of actual number of children (0,1,2,3,...) that go to each type of school. In this setup, if you have a separate variable to indicate whether there are children in the household or not, then you should not use it anymore, since in such a household the three variables will each take the value 0. Alecos Papadopoulos PhD Athens University of Economics and Business web: alecospapadopoulos.wordpress.com/ scholar:https://g.co/kgs/BqH2YU On 22/11/2020 17:16, sheri hapuarachchi wrote: > Dear All, >  I am using the multiple regression model to identify the determinants > of household expenditure on education.One of my independent variable > is the "type of school ''(It means whether they go to > government,private or international school).for an example if there > are 3 children in a household,two children go to government schools > and the other child goes to private,when considering the whole > household ,how to catergorize the variable?.Please send the possible > way to find out. > Thanks > With regards, > Sherika Hapuarachchi