panel data: fixed effect model

[kazmi89]

dear members i would like to ask:
as it is stated that fixed effect model is appropriate in the situations when the individual specific intercept term is correlated with the regressors because fixed effect demeaned that time invariant term. my question is that when i run the regression in eviews using fixed effect model then why the intercept term is appeared? because according to the theory it should not be their (due to time demeaning) i am very much confused can you please help me
i have 10 countries and the intercept term is capturing the country specif time invariant effects

[EViews Gareth]

EViews reports the average of the cross-section effects as the constant, and then reports the deviations from the average as the individual effects.

[kazmi89]

EViews reports the average of the cross-section effects as the constant, and then reports the deviations from the average as the individual effects.

so in that case the constant terms are correlated with the explanatory variables or not? waiting for your response sir
regards
Talha

[EViews Glenn]

I'm not sure that I understand the question. In a fixed effect model, the constants are estimates of coefficients of explanatory variables.

[kazmi89]

I'm not sure that I understand the question. In a fixed effect model, the constants are estimates of coefficients of explanatory variables.

sir i am estimating the factor behind inflation in asian economies, and i want to estimate it by using LSDV, can you plz tell me that i have to generate a dummy variable manually or i can estimate it by clicking on cross sections effect button?
moreover if i got estimates by clicking on the cross sections effect button, then whether these estimates are based on the time demeaned data or not?

[EViews Glenn]

The cross-section effects setting will estimate using LSDV on the cross-section demeaned data where observations are demeaned using the means computed over time for the cross-section.

[kazmi89]

The cross-section effects setting will estimate using LSDV on the cross-section demeaned data where observations are demeaned using the means computed over time for the cross-section.

from your reply i realized is that: first of all eviews demeaned the data and after that it assigns the dummy variable for each cross section, sir my understanding is right or wrong?
sir can you please quote here the formula of the the constant term which shows the average of the cross sections effect and if it is possible then also write the formula of the individual effect i.e which shows the deviations from the average effect ?
thank you in advance your response is very much precious for me

[EViews Glenn]

Demeaning is equivalent to adding a dummy for each cross-section for computation of the remaining coefficients. The formula for the effects involves a variety of projection matrices, but roughly speaking adds back in an overall mean after removing cross-section means, which allows you to estimate the overall mean, and expresses the effects in terms of deviations from that overall mean.