Panel Data

[RickLast]

Hi,

I want to estimate a panel model in eviews, and I am experiencing a problem. A very short describtion of my research:

I have xxxx number of banks and I want to include an interest rate to my analysis. Of course this interest rate is the same for all banks in every year (I use annual data), it is only time-varying.

First I just putted the interest rate of example 2015 with every bank in my data set but I am getting weird results when im using period (time) fixed effects. When I want to du a redundant fixed effects test I get the message: near singular matrix. Which makes sense I guess since every interest rate is stated again for each bank.

I attachted a example Excel file (very simplistic and with completely random numbers) to show you which kind of data I uploaded to eviews. You can see in column E that the same interest rate is present for each bank in a calender year. Is this the right way to do this?

Question:

Is it possible to include an non-crossectionally varying variable into a panel model? Or is the manner i did the correct way and have I just have to coop with the weird results.

I hope someone can help me, im hoping as well that my explanation of my problem is understandable. It is pretty hard to write down a problem on paper instead of teliing someone.

Kind regards,

Rick