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Hi,

I am a new user of eviews 8. I am working my dissertation which is based on panel data. I have to run a fixed effect cross section regression model. The problem is that I have to include a dummy variable (for company's industry) and I am getting the following error message: "Near singular matrix". How can I include a dummy variable in a fixed effect cross section model?

Any help would be great.

Thank you in advance.

Is one of your variables always the same for a given company?

My sample consist of 35 companies for 3 years. The dummy variable is industry. For example, if the company is in the mining industry, the dummy variable gets 1 and if the company is in the banking industry it takes 0.

My sample consist of 35 companies for 3 years. The dummy variable is industry. For example, if the company is in the mining industry, the dummy variable gets 1 and if the company is in the banking industry it takes 0.

You can't have a fixed effect as well as a variable that's constant for a company. Nothing to do with EViews, just math.

I see. Thank you very much for your time.