problem of Fixed and Random estimation

[philongdl]

Hi all,

I have a panel data for 149 companies during 4 years. I already put the data and i want to estimate the fixed and random effects. but eview announced "Near singular matrix". My dependent variables are stl, dr, ltI and my explanatory variables are GROW, NDTS, PROF, SIZE, BUSS, TANG and DUMMY is OWN. I don't what the matter with my data. This is the first time i used eview and i use version 6. How can i do for this error? Sorry for basic question.

[EViews Gareth]

You can't have that dummy variable and fixed effects.

[philongdl]

Why Gareth? plz explain more clearly

[EViews Gareth]

It creates a singular matrix.

[startz]

Look up "dummy variable trap."

[Amy Hanani Amran]

I am estimating a panel data (country: 7, Year :15) and I'm using gravity model which is use variable GDP and population Indonesia, GDP and population 7 other country, exchange rate, and distance.

when i try to estimate fixed effect model, I 've got an error message "Near Singular Matrix". can you tell me how to fix it ?

Thx a lot :)

[EViews Gareth]

Don't use variables that cause a singular matrix.

[Amy Hanani Amran]

Don't use variables that cause a singular matrix.