Page 1 of 1
Can't obtain period fixed effects
Posted: Wed Feb 09, 2011 11:08 am
by antionio
Hi everybody!
I'm trying to estimate a fixed effects model in eviews 7 and I have a small problem.
When I go to Redundant Fixed Effects - Likelihood Ratio Test, I only get Cross-section F and Cross-section Chi-square.
I would also like to obtain period fixed effects.
My model looks like this: y c x1 x2 x3 x4. What do I need to write in the equation in order to get period fixed effects as well?
Re: Can't obtain period fixed effects
Posted: Wed Feb 09, 2011 11:14 am
by EViews Glenn
The redundant test only tests the effects that are already in the model. You have to estimate the original equation using period effects.
Re: Can't obtain period fixed effects
Posted: Wed Feb 09, 2011 11:15 am
by EViews Gareth
If you estimate your equation with only cross-section effects, the test will only test cross-section effects.
If you estimate your equation with only period effects, the test will only test period effects.
If you estimate your equation with both cross-section and period effects, the test will test both.
Re: Can't obtain period fixed effects
Posted: Thu Feb 10, 2011 4:20 am
by antionio
Can you please tell me how to specify the model in order to obtain both cross-section and period effects?
How should the equation look like?
y .....................
Re: Can't obtain period fixed effects
Posted: Thu Feb 10, 2011 9:04 am
by EViews Gareth
When you estimate your equation there is an Panel Options tab that lets you set the effects specification.
Re: Can't obtain period fixed effects
Posted: Sat Feb 12, 2011 4:58 am
by antionio
Thank you, I managed now.
However, there are still some issues.
From the Redundant Fixed Effects Tests, now obtain three outputs with estimates (see the attachment)
but I also get an outout when running the model, before I go the Redundant Fixed Effects Tests option.
When I report the results, which output should I look at?
In the panel options tab there is also a box called
Coef covariance method. How do I know which one to use in my model?