Fixed Effect model

For econometric discussions not necessarily related to EViews.

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rabia
Posts: 2
Joined: Fri May 16, 2014 7:11 am

Fixed Effect model

Postby rabia » Sat Jun 28, 2014 3:05 am

I am using eviews 7 to estimate my panel data. I'm using fixed effect model, in which there is cross section and period effect model. My question is, that how can I find out about which model (cross section or period effect) I have to use and how to interpret the results?

harata25
Posts: 2
Joined: Thu Jul 10, 2014 10:17 am

Re: Fixed Effect model

Postby harata25 » Thu Jul 10, 2014 10:23 am

Hi Rabia.
I am also using eviews 7 to estimate my panel data, and I need some help here.
Firstly, I start with many variables right? Then I run estimation directly on fixed effect or what?
And of course, we need to drop out the insignificant variables right? Do we drop the variables before testing for fixed/random effects or do we test the fixed/random effects with all variables included first and then remove the insignificant ones after we done the fixed/random test?
Please help me. Thanks!


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