[Help] urgent error in fixed effect

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takeiteasy
Posts: 3
Joined: Thu Aug 12, 2010 12:12 am

[Help] urgent error in fixed effect

Postby takeiteasy » Thu Aug 12, 2010 12:48 am

Sorry guys i make new topic for this problem,
i already search for this topic and cannot understand about the solution.
i want to estimate this equation

lwage = c edu1 edu2 edu3 exper expersq occ1 occ2 occ3 occ4 occ5 occ6 occ7 tenure married

but when i try to estimate with fixed effect, error occurred...near singular matrix

Please i really need to solve this assignment for tomorrow.
if somebody can help me, i will really appreciate that.
Last edited by takeiteasy on Thu Aug 12, 2010 10:00 am, edited 1 time in total.

takeiteasy
Posts: 3
Joined: Thu Aug 12, 2010 12:12 am

Re: [Help] urgent error in fixed effect

Postby takeiteasy » Thu Aug 12, 2010 1:04 am

any idea ? please ....

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: [Help] urgent error in fixed effect

Postby startz » Thu Aug 12, 2010 7:12 am

Any chance you've hit the dummy variable trap?

takeiteasy
Posts: 3
Joined: Thu Aug 12, 2010 12:12 am

Re: [Help] urgent error in fixed effect

Postby takeiteasy » Thu Aug 12, 2010 7:40 am

do you mean, my method is wrong? may be you have suggestion? please help me, this my first time use Eviews

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: [Help] urgent error in fixed effect

Postby startz » Thu Aug 12, 2010 7:48 am

This has nothing to do with EViews. The dummy variable trap is something that should be covered in your econometrics course. You might look it up on wikipedia.


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