Nonlinear Fixed Effects
Moderators: EViews Gareth, EViews Moderator
Nonlinear Fixed Effects
Can anyone help me how to run nonlinear fixed effects on Eview? If i have equation like Y=a+b+b^2+c+c^2, what should i write in the command on Eviews?

 Nonnormality and collinearity are NOT problems!
 Posts: 3458
 Joined: Wed Sep 17, 2008 2:25 pm
Re: Nonlinear Fixed Effects
Are a,b, and c series with coefficients to be estimated?
Re: Nonlinear Fixed Effects
a is the intercept while B and C is beta. Am i answering your question? sorry...i am new on Eviews so I do not really understand about your question.

 Nonnormality and collinearity are NOT problems!
 Posts: 3458
 Joined: Wed Sep 17, 2008 2:25 pm
Re: Nonlinear Fixed Effects
As written, your equation doesn't seem to have any data in it.
Re: Nonlinear Fixed Effects
Thank Startz for your prompt response. Please find the actual equation on the attached file. All of equation is data. I am using panel data in Eviews.
 Attachments

 Equation.PNG (9.15 KiB) Viewed 2105 times

 Nonnormality and collinearity are NOT problems!
 Posts: 3458
 Joined: Wed Sep 17, 2008 2:25 pm
Re: Nonlinear Fixed Effects
This equation is linear in the coefficients, so it's estimated by linear least squares. Nothing special needs to be done about the fixed effects.
Re: Nonlinear Fixed Effects
Based on your explanation, does it mean that I can run it the same way as I run linear fixed effects, right?
I did run it using the same way as linear fixed effect with just different equation that I showed you. However, the result came out that pvalue is higher than 60% for all variables.
I did run it using the same way as linear fixed effect with just different equation that I showed you. However, the result came out that pvalue is higher than 60% for all variables.

 Nonnormality and collinearity are NOT problems!
 Posts: 3458
 Joined: Wed Sep 17, 2008 2:25 pm
Re: Nonlinear Fixed Effects
Well, then the individual coefficients aren't significant.
You might want to test the joint significance of beta1 and beta2 or beta3 and beta4.
You might want to test the joint significance of beta1 and beta2 or beta3 and beta4.
Re: Nonlinear Fixed Effects
What do you mean by running join significant? May I know how to do it? Do you have any link to share for this?
Re: Nonlinear Fixed Effects
By doing so, it will no longer be a fixed effect estimator, right?

 Nonnormality and collinearity are NOT problems!
 Posts: 3458
 Joined: Wed Sep 17, 2008 2:25 pm
Re: Nonlinear Fixed Effects
No, this is just a test of coefficients. You can do it either with fixed effects or without fixed effects.
Re: Nonlinear Fixed Effects
i cannot find those option based on the guideline. The guideline is in version 10 while mine is version 9.

 Nonnormality and collinearity are NOT problems!
 Posts: 3458
 Joined: Wed Sep 17, 2008 2:25 pm
Re: Nonlinear Fixed Effects
Look in the builtin help system under Wald test/coefficient restriction
Re: Nonlinear Fixed Effects
Hi, after doing further research, non linear time fixedeffects might fit my study.
May i know how to write equation in Eviews if i want to use time fixedeffects.
I use this equation as nonlinear fixed effects (Y c A _A^2 B B^2 lngdp crisis_year)
Then i tried the same equation on time fixedeffect and tick Fixed on both Crosssection and Period in Panel Option, but it shows "Near singular matrix".
Your prompt response is really appreciated.
May i know how to write equation in Eviews if i want to use time fixedeffects.
I use this equation as nonlinear fixed effects (Y c A _A^2 B B^2 lngdp crisis_year)
Then i tried the same equation on time fixedeffect and tick Fixed on both Crosssection and Period in Panel Option, but it shows "Near singular matrix".
Your prompt response is really appreciated.
Return to “Econometric Discussions”
Who is online
Users browsing this forum: No registered users and 2 guests