Panel data econometrics

[muscheng]

Hi all,

I am trying to estimate a panel data model, but I have something that I am not sure about.

First, when we estimate a model with fixed effect, may I ask how Eviews estimate the fixed effect? Is it in effect estimating the fixed effect by including a dummy variable for each cross section, and then intepreting the coefficient of the dummy variable as the fixed effect?

Secondly, in the case of a dynamic panel model, including the case of an error correction model, is it necessary to use GMM technique in the estimation?

Thank you so much!

muscheng