As a small part of a project, I have been asked to tailor a large panel dataset I have built into a form that is more comparable to one specific country.
So I have done the following:
Look at the ranges of my dependent variable, explanatory variables and controls for the country of interest.
Drop any firm-time observations that fall outside the ranges of any of these variables.
Run my regression on the truncated sample.
I was wondering whether there are any serious cons of this approach - particularly given that my method will include only a subset of the observations for some firms. Bear in mind that this is meant to provide a rough and ready indication rather than be a super robust exercise.
Many thanks for your help.