This graph is a visual representation of a multivariate regression with 650,965 observations. The following graph shows the relationship between quality of teaching in elementary or middle school and a student's earnings at age 28. All procedures in binscatter are optimized for speed in large datasets. By default, binscatter also plots a linear fit line using OLS, which represents the best linear approximation to the conditional expectation function.īinscatter provides built-in options to control for covariates before plotting the relationship, and can automatically plot regression discontinuities. To generate a binned scatterplot, binscatter groups the x-axis variable into equal-sized bins, computes the mean of the x-axis and y-axis variables within each bin, then creates a scatterplot of these data points. You can also download the source files, which include the Stata code to generate every figure shown in the slide deck.īinned scatterplots are a non-parametric method of plotting the conditional expectation function (which describes the average y-value for each x-value). How binscatter can be used to graphically depict regression discontinuities, regression kinks, and event studies Why a binned scatterplot is a meaningful representation of an OLS regression coefficient How binscatter generates a binned scatterplot This slide deck provides a thorough introduction to binscatter. The Examples section of the help file contains a clickable walk-through of binscatter's various features. #Stata regress by group installOpen Stata and install binscatter from the SSC repository by running the command: ssc install binscatterĪfter installing binscatter, you can read the documentation by running help binscatter. They are especially useful when working with large datasets. These are a convenient way of observing the relationship between two variables, or visualizing OLS regressions. Binscatter A stata program to generate binned scatterplots.īinscatter is a Stata program which generates binned scatterplots.
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