Non-linear Fixed Effects
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Non-linear Fixed Effects
Can anyone help me how to run non-linear 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?
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- Non-normality and collinearity are NOT problems!
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Re: Non-linear Fixed Effects
Are a,b, and c series with coefficients to be estimated?
Re: Non-linear 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.
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- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Non-linear Fixed Effects
As written, your equation doesn't seem to have any data in it.
Re: Non-linear 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.
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- Equation.PNG (9.15 KiB) Viewed 9972 times
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- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Non-linear 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: Non-linear 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 p-value 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 p-value is higher than 60% for all variables.
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- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Non-linear 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: Non-linear 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: Non-linear Fixed Effects
By doing so, it will no longer be a fixed effect estimator, right?
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- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Non-linear Fixed Effects
No, this is just a test of coefficients. You can do it either with fixed effects or without fixed effects.
Re: Non-linear Fixed Effects
i cannot find those option based on the guideline. The guideline is in version 10 while mine is version 9.
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- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Non-linear Fixed Effects
Look in the built-in help system under Wald test/coefficient restriction
Re: Non-linear Fixed Effects
Hi, after doing further research, non linear time fixed-effects might fit my study.
May i know how to write equation in Eviews if i want to use time fixed-effects.
I use this equation as non-linear fixed effects (Y c A _A^2 B B^2 lngdp crisis_year)
Then i tried the same equation on time fixed-effect and tick Fixed on both Cross-section 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 fixed-effects.
I use this equation as non-linear fixed effects (Y c A _A^2 B B^2 lngdp crisis_year)
Then i tried the same equation on time fixed-effect and tick Fixed on both Cross-section and Period in Panel Option, but it shows "Near singular matrix".
Your prompt response is really appreciated.
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