EViews.com

Hello,

I try to estimate a random effects model with 17 independent variables using Eviews 8. However, when I try to run the model the following error message pops up "Random effects estimation requires number of cross sections -> number of coef. for between estimator for estimate of RE innovation variance." I am not quite sure what that means. It would be really great if somebody could help me. Thank you so much!!

It means you need more cross-sections.

Thank you very much for your answer.But I am still a bit confused. I got 14 cross-sections and 148 datapoints (145 when including lags). So I am wondering how is it possible that I have too little corss-sections? Thank you again for your help! :)

You need more cross-sections than variables. You have 17 variables and 14 cross-sections.

Thank you that is very helpful!