Cannot estimate two way fixed effects
Posted: Thu Sep 22, 2011 2:01 am
Dear all,
I am trying to estimate a two way fixed effects panel model in EViews. My sample consists of N=T=11 (11 cross-sections, 11 years).
However, when I include time fixed effects in my model, I get the following message: Near Singular matrix.
Cross-section fixed effects alone work fine.
Why is this happening and what should I do to fix the problem? Any suggestions are greatly appreciated.
I am using EViews 7.
I am trying to estimate a two way fixed effects panel model in EViews. My sample consists of N=T=11 (11 cross-sections, 11 years).
However, when I include time fixed effects in my model, I get the following message: Near Singular matrix.
Cross-section fixed effects alone work fine.
Why is this happening and what should I do to fix the problem? Any suggestions are greatly appreciated.
I am using EViews 7.