Based on the result of Hausman test, I proceeded with RE model for the attached data, where my variables are as below:
Dep. variable: RoA3
Indep. variables: addedcult, addedgeo
Control variables: sales, debt, industriesnew
Afterwards, I wanted to apply endogeneity test to detect if there is any in my variables.
Specification: roa3 addedcult addedgeo sales debt industriesnew c
Panel Options --> Effects specification --> Given the Hausman test output, I choose "Random" for both cross-section and period parameters
However, I received an error as "Near singular matrix in computation of Swamy-Arora RE component variances.". Although I did not add any dummy variable to my dataset, what could be the reason for that error? How can I overcome it?
For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.
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