Panel or Pool?
Moderators: EViews Gareth, EViews Moderator
Re: Panel or Pool?
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
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 Developer
- Posts: 2672
- Joined: Wed Oct 15, 2008 9:17 am
Re: Panel or Pool?
EViews 8 panel structured workfiles allow you to estimate these models.
Re: Panel or Pool?
Hi
Could you please explain the step o estimation using structural panel, i am unable to do it..
Could you please explain the step o estimation using structural panel, i am unable to do it..
-
- Posts: 540
- Joined: Fri Apr 15, 2011 5:35 am
Re: Panel or Pool?
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
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.
-
- Fe ddaethom, fe welon, fe amcangyfrifon
- Posts: 13319
- Joined: Tue Sep 16, 2008 5:38 pm
Re: Panel or Pool?
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.
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.
Follow us on Twitter @IHSEViews
-
- EViews Developer
- Posts: 2672
- Joined: Wed Oct 15, 2008 9:17 am
Re: Panel or Pool?
As to EViews 8 panel cointegration...the manual has step-by-step instructions and examples.
Re: Panel or Pool?
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
Pedro
-
- Fe ddaethom, fe welon, fe amcangyfrifon
- Posts: 13319
- Joined: Tue Sep 16, 2008 5:38 pm
Re: Panel or Pool?
Change the coefficient vector to something else. It is an option on the estimation dialog.
Follow us on Twitter @IHSEViews
Re: Panel or Pool?
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.
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.
-
- Posts: 11
- Joined: Wed Jul 10, 2019 6:57 am
Re: Panel or Pool?
hi,
Id like to use a panel regression, but have a couple questions
1) when i estimate an equation I get the error '--Insufficient number of observations in "EQUATION EQ1.LS(CX=F) PB C EPS SECTOR"--. However, when I just use eq1.ls(cx=f) PB C EPS (i.e without 'sector' it works fine). variable sector has the same number of observations, so I can't figure out what happening
2) im ultimately trying to control for the variable 'sector', which is a category variable with 11 categories. Is there an easy way to do this with a panel? It is also already in stacked format.
Thanks
Id like to use a panel regression, but have a couple questions
1) when i estimate an equation I get the error '--Insufficient number of observations in "EQUATION EQ1.LS(CX=F) PB C EPS SECTOR"--. However, when I just use eq1.ls(cx=f) PB C EPS (i.e without 'sector' it works fine). variable sector has the same number of observations, so I can't figure out what happening
2) im ultimately trying to control for the variable 'sector', which is a category variable with 11 categories. Is there an easy way to do this with a panel? It is also already in stacked format.
Thanks
-
- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Panel or Pool?
Check to see if the sector variable has NAs.
Look at the @expand command for controlling for multiple sectors.
Look at the @expand command for controlling for multiple sectors.
-
- Posts: 11
- Joined: Wed Jul 10, 2019 6:57 am
Re: Panel or Pool?
Sector does not, PB has some NAs but the equation works fine with just 'pb' and 'eps"
-
- Fe ddaethom, fe welon, fe amcangyfrifon
- Posts: 13319
- Joined: Tue Sep 16, 2008 5:38 pm
-
- Fe ddaethom, fe welon, fe amcangyfrifon
- Posts: 13319
- Joined: Tue Sep 16, 2008 5:38 pm
Re: Panel or Pool?
Workfile received...
Your sector variable contains no numerical data, thus every observation is an NA.
You'll have to convert it into a numerical variable, or create dummy variables using @expand as Startz suggested.
Your sector variable contains no numerical data, thus every observation is an NA.
You'll have to convert it into a numerical variable, or create dummy variables using @expand as Startz suggested.
Follow us on Twitter @IHSEViews
Return to “General Information and Tips and Tricks”
Who is online
Users browsing this forum: Majestic-12 [Bot] and 20 guests