I am working on a paper that tests to see if banking competition has an impact on whether borrowers engage in relationships with multiple banks.
Number of relationships with various banks obtained from the survey :
firm (a) 1 relationship with a bank
firm (b)3 relationships with 3 different banks
firm (c)5 relationships 5 with 5 different banks
I made a small change to the number of relationship variable as I want to use counts models such as poisson, nbreg and ZIP on Stata :
Instead I am using a slightly transformed version, I am using firms with 1 relationship as having zero multiple relationship and firms with lets say 5 relationships as having 4 multiple relationships .
Is this a sensible approach to model counts?