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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)
FE with EVIEWS.pdf
(154.77 KiB) Downloaded 500 times
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?