Dynamic Panel Model- Orthogonal transformation
Posted: Mon May 20, 2019 12:32 am
Hi,
In the dynamic Panel model I was using orthogonal deviation. In this methodology, I presume transformation of the original values is carried out by deducting mean of all the future value from the original value.
I took transformed actual values of dependent variable from "actual fitted and residual" tab, and then tried to recalculate it by deducting the mean of the future values from the original value. I did not come close. It was way off.
So the question is: What is the exact methodology for the transformation of the original values when running Dynamic Panel Model- Orthogonal. Will really appreciate if you explain with a simple example for me to do it in excel.
Thanks a lot for help!
Best,
Sunny
In the dynamic Panel model I was using orthogonal deviation. In this methodology, I presume transformation of the original values is carried out by deducting mean of all the future value from the original value.
I took transformed actual values of dependent variable from "actual fitted and residual" tab, and then tried to recalculate it by deducting the mean of the future values from the original value. I did not come close. It was way off.
So the question is: What is the exact methodology for the transformation of the original values when running Dynamic Panel Model- Orthogonal. Will really appreciate if you explain with a simple example for me to do it in excel.
Thanks a lot for help!
Best,
Sunny