Panel Data (Inconsistencies in Importing)
Posted: Sun Aug 26, 2012 1:27 pm
I have noticed an inconsistency in Panel Estimation, to present this more clearly I have simplified the dataset which is attached to this post. I have a Panel of 4 countries with annual data from 1990 to 1997.
If I create a Panel with all four countries with annual data for 1990 to 1997, firstly I run a fixed effects panel estimate from 1990 to 1994.
Secondly I create a new Panel with the same four countries and with the same annual data, however I have already trimmed the sample and import only the data from 1990 to 1994. I then run a fixed effects panel estimate from 1990 to 1994.
Surely these should be exactly the same, however they are quite different. Please could someone kindly explain if I have imported the data incorrectly, missed an econometric step, or otherwise?
If I create a Panel with all four countries with annual data for 1990 to 1997, firstly I run a fixed effects panel estimate from 1990 to 1994.
Secondly I create a new Panel with the same four countries and with the same annual data, however I have already trimmed the sample and import only the data from 1990 to 1994. I then run a fixed effects panel estimate from 1990 to 1994.
Surely these should be exactly the same, however they are quite different. Please could someone kindly explain if I have imported the data incorrectly, missed an econometric step, or otherwise?