Panel or Pool?

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praveen
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Joined: Fri Nov 01, 2013 3:12 am

Re: Panel or Pool?

Postby praveen » Thu Jan 09, 2014 12:32 am

Hi,
To estimate Fully Modified OLS and Dynamic OLS individual cross section country estimation pedroni's approach article link- http://web.williams.edu/Economics/wp/pe ... asing.pdf- could you please help me how to estimate the same for each countries.


Thanks regards

EViews Glenn
EViews Developer
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Re: Panel or Pool?

Postby EViews Glenn » Thu Jan 09, 2014 1:39 pm

EViews 8 panel structured workfiles allow you to estimate these models.

praveen
Posts: 8
Joined: Fri Nov 01, 2013 3:12 am

Re: Panel or Pool?

Postby praveen » Fri Jan 10, 2014 11:19 am

Hi
Could you please explain the step o estimation using structural panel, i am unable to do it..

tvonbrasch
Posts: 410
Joined: Fri Apr 15, 2011 5:35 am

Re: Panel or Pool?

Postby tvonbrasch » Tue Jan 14, 2014 3:32 am

Hi Gareth,

When writing about advantages and disadvantages of using Pool or Panel workpages, you state that an advantage of the panel workpage is that "any lags/leads will never cross seams (the last observation for one cross-section will never be included in the lags of the next cross-section)".

Can you please elaborate on this point? Will this happen if you work in a pool workfile?
Thomas





EViews Gareth wrote:Panel or Pool?

There is no right or wrong answer when deciding whether to use a panel or a pool workfile structure when working with panel data in EViews. However, here are some bullet points that trade off one against the other.
  • Pool workfiles can become complicated and messy when you have many cross-sections.
    Since you need a series per cross-section per variable, as soon as you have many cross-sections, your workfile can grow very large. In a panel, you only have one series per variable no matter how many cross-sections you have.
  • Panel workfiles can be tricky to use if you want to deal with large sub-sets of cross-sections.
    In the pool workfile, you can create new pool objects for each set of cross-sections you want to deal with. Defining those pool objects is simply a case of listing the cross-section IDs you want to use. In a panel workfile, you need to use sample if statements to define which cross-sections you want to deal with, which can become quite cumbersome:

    Code: Select all

    smpl if country="USA" or country="FRA" or country="JPN" or country="CAN" or country="UK" etc.....

  • Pool workfiles make it easy to perform cross-section, cross-variable analysis. Panels do not
    In a pool workfile it is easy to group different variables for different cross-sections. For example, cointegration between Unemployment in France and GDP in the UK can be performed by simply opening those two series as a group in the pool workfile. In a panel workfile it is almost impossible to do this.
  • Panel estimation has more estimation options and techniques available
    As well as specialised panel-estimation techniques for least-squares, two-stage least squares and GMM (including dynamic panel data estimation), most of the standard non-panel estimation methods (probit, liml, quantile regression, etc...) are available on the stacked data. Further any lags/leads will never cross seams (the last observation for one cross-section will never be included in the lags of the next cross-section).
  • Pool estimation lets you calculate cross-section specific coefficients
    The pool object lets you specify cross-section specific coefficients in least squares estimation. The panel estimator does not allow this (other than cross-section specific constants, i.e. fixed effects).
  • The panel workfile lets you generate cross-section or period statistics easily using the @statsby functions
    For example if you want to create a series containing by-cross-section means (i.e. the mean of a variable per cross-section) of a variable, Y, you could use the following:

    Code: Select all

    series cxmeans = @meansby(Y, @crossid)

    where @crossid is a keyword meaning cross-section identifiers. To do the same for periods:

    Code: Select all

    series pxmeans = @meansby(Y, @obsid)

    where @obsid is a keyword meaning date/time identifiers.

    This can be done in a pool workfile by using the pool object's generate procedure.
  • Panel equations have built in forecasting. Pool objects do not - model objects must be used instead

Feel free to post any other issues with pools or panels below.

EViews Gareth
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Re: Panel or Pool?

Postby EViews Gareth » Tue Jan 14, 2014 7:14 am

That point is just meant to say that a wider set of non-panel specific estimation methods are available in a panel workfile.

You cannot, for example, estimate a VAR or a probit using a pool. You can in a panel, although the methods use will be the non-panel versions.
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EViews Glenn
EViews Developer
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Joined: Wed Oct 15, 2008 9:17 am

Re: Panel or Pool?

Postby EViews Glenn » Tue Jan 14, 2014 5:38 pm

As to EViews 8 panel cointegration...the manual has step-by-step instructions and examples.

tvonbrasch
Posts: 410
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Re: Panel or Pool?

Postby tvonbrasch » Wed Jan 15, 2014 12:49 am

ok, thanks
Thomas

Perez2501
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Joined: Sat May 17, 2014 3:43 pm

Re: Panel or Pool?

Postby Perez2501 » Sun May 18, 2014 12:39 pm

Is there any limit for the cross dimension? When try to estimate a fixed effect model (770 cross section x 7 time periods) Eviews reply an error message: "Matrix size error: too many parameters for default coefficient vector"

Pedro

EViews Gareth
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Re: Panel or Pool?

Postby EViews Gareth » Sun May 18, 2014 2:14 pm

Change the coefficient vector to something else. It is an option on the estimation dialog.
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Nuantip
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Joined: Sat Mar 05, 2016 10:07 pm

Re: Panel or Pool?

Postby Nuantip » Sat Mar 05, 2016 10:52 pm

Hi

Thank you for your explanation about Panel and Pooled. I would like to ask some question. How can I check multicollinearity in Pooled Least Square.
In Eviews 6, I click Quick --> Group Statistics --> Correlations, Then I type equation in Series List, for example, logfdi? logfdi?(-1) loggdp? logwage?
After that, Error message said that logfdi? logfdi?(-1) loggdp? logwage? is not defined.
So, I don't know how to check multicollinearity. Could you please help me?
Thank you in advance.


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