Regression Panel Data Estimation:FE & RE

[ktchan]

Dear Friends,
I am using a 7 years panel data for regression. I was told to use Fixed Effect (FE) and Random Effect (RE). Since EVIEWS has the Regression Model, I wonder how to get the outputs for FE and RE? This research area involves 1 dependent variable and 8 independent variables. Is dummy variable any good for FE & RE?

Many thanks

[christina.sakali]

There is an option for fixed or random effects in the Equation Estimation dialog. You should go to Panel Options and select fixed or random in the effects specification. Make sure you have structured your workfile as a panel , in order for these options to appear in the dialog. EViews Help describes this very well.

You can use dummy variables with fixed effects method except for dummy variables which remain constant over time. You 'll see that if you include such variables and run a fixed effects specification, the regression wont be able to run and EViews will give you no results.

Hope this helps!

[ktchan]

Hi,
Thanks for the tips. I will work on it and see the results.