Panel Least Squares 2020.
Posted: Sat Apr 11, 2020 10:02 am
Hello freinds,
Im actually examining a panel data for my study.Actually i wanted to use GMM model in the beginning, but now i want to use panel least squares. I read about least squares and saw few videos, but still dont have a clear idea about all the steps that i must do before starting estimating, i know that for estimation in eviews (as i will use eviews and not stata) :
1. Specify the equation command in the software;
2. Run the estimations to get the results and then check the diagnostics to onfirm there is no problem with results;
3. Solve problems in case if there is any one (autocorrelation, multicolinearity and heteroscedasticity);
8. Extract results and tabulate for analysis.
But before all that,
Imean before choosing the model do we need to do any tests ? as im intending to use panel least squares, should i do any tests before runing the estimations ?
I have other questions ?
- How to determine the regression equation ?
- How can i know wich model should i use : fixed effet or random ? - I read that we must do some tests but which tests !?
I would appreciate if you can share step by step instructions if possible. Im new to econometrics, so please apologise my number of questions. Actually i ask lot of questions by nature, i like to learn about everything.
Thank you in advance for any feedback.
Best regards
Im actually examining a panel data for my study.Actually i wanted to use GMM model in the beginning, but now i want to use panel least squares. I read about least squares and saw few videos, but still dont have a clear idea about all the steps that i must do before starting estimating, i know that for estimation in eviews (as i will use eviews and not stata) :
1. Specify the equation command in the software;
2. Run the estimations to get the results and then check the diagnostics to onfirm there is no problem with results;
3. Solve problems in case if there is any one (autocorrelation, multicolinearity and heteroscedasticity);
8. Extract results and tabulate for analysis.
But before all that,
Imean before choosing the model do we need to do any tests ? as im intending to use panel least squares, should i do any tests before runing the estimations ?
I have other questions ?
- How to determine the regression equation ?
- How can i know wich model should i use : fixed effet or random ? - I read that we must do some tests but which tests !?
I would appreciate if you can share step by step instructions if possible. Im new to econometrics, so please apologise my number of questions. Actually i ask lot of questions by nature, i like to learn about everything.
Thank you in advance for any feedback.
Best regards