dummy variable in panel data

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mahan
Posts: 1
Joined: Sat Aug 02, 2014 7:33 pm

dummy variable in panel data

Postby mahan » Sat Aug 02, 2014 8:04 pm

hi,
i'm using panel data for 3 cross section and 11 years. i use one variable that is fixed for all cross sections but i see near singular matrix!!! why?
and, how i can use dummy variable in model? how i can exclude one year?
thanks for any help

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

Re: dummy variable in panel data

Postby startz » Sun Aug 03, 2014 7:26 am

You can't have cross-section dummies and a variable that is constant within a cross-section.

Use the smpl command to choose years.


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