How To Insert a Time Trend

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DogeProphet
Posts: 6
Joined: Sun Mar 29, 2015 5:06 am

How To Insert a Time Trend

Postby DogeProphet » Sun Mar 29, 2015 5:18 am

Hello,

I am trying to insert a time trend into my model estimating the impact of HIV on GDP. I have included capital investment, gov spending HIV prevalence and Life Expectancy as independent variables. I took logs of all variables in the estimation equation so my equation is: log(gdp) c log(govspend) log(capital) log(hiv) log(life). I also estimated this equation with cross-section and panel fixed effects. However, whenever i try and insert @trend to include a time trend within my model to test for serial autocorrelation, I get near singular matrix error. I have no idea what this is and no idea on how to fix this. Please Help. I have attached my workfile and used all the adjusted data for the regression and life expectancy.
Attachments
workingfile_paneldatafinal.wf1
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startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: How To Insert a Time Trend

Postby startz » Sun Mar 29, 2015 6:53 am

You can't have both a time trend and period fixed effects. They're redundant.

DogeProphet
Posts: 6
Joined: Sun Mar 29, 2015 5:06 am

Re: How To Insert a Time Trend

Postby DogeProphet » Sun Mar 29, 2015 6:57 am

You can't have both a time trend and period fixed effects. They're redundant.
Thank You. I assume this means that sice i'm running the fixed effects I don't need to run a time trend?

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: How To Insert a Time Trend

Postby startz » Sun Mar 29, 2015 7:00 am

That's right.

DogeProphet
Posts: 6
Joined: Sun Mar 29, 2015 5:06 am

Re: How To Insert a Time Trend

Postby DogeProphet » Sun Mar 29, 2015 7:03 am

Slightly off topic but at what confidence interval does eviews run regressions at by default? 0.95 or 0.90?

startz
Non-normality and collinearity are NOT problems!
Posts: 3797
Joined: Wed Sep 17, 2008 2:25 pm

Re: How To Insert a Time Trend

Postby startz » Sun Mar 29, 2015 7:47 am

Slightly off topic but at what confidence interval does eviews run regressions at by default? 0.95 or 0.90?
I'm afraid the question doesn't make sense. Regressions aren't run at any confidence interval. After a regression is run, one can use the output to compute any desired confidence interval.


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