Fixed effects vector decomposition

[rurikfannar]

Hi all,

I am estimating a fixed effects model that includes both time-varying variables and time-invariant variables. I have recently stumbled upon a technique that allows estimation of time-invariant variables. It consists of three steps:

(1) estimation of the unit fixed effects by the baseline panel fixed effects
model excluding the time-invariant right hand side variables;
(2) regression of the fixed effects vector on the time invariant explanatory
variables of the original model (by OLS);
(3) estimation of a pooled OLS model by including all explanatory timevariant
variables, the time-invariant variables and the unexplained part of
the fixed effects vector. This stage is required to control for
multicollinearity and to adjust the degrees of freedom.

I was wondering if there is someone here that could guide me in the right direction on how to do this in eviews (and to tell me if this is even possible). I am using Eviews 6.

time-varying variables are: size, growth, asset_str, age, prof, recov_r
time-invariant variables are inv_pro, lr_index, enf_con
dependent variables: total_lev, long_lev, short_lev

Attached is Eviews workfile

Regards,
RFJ.