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Factor augmented panel estimation

Posted: Mon Jun 08, 2009 3:58 pm
by gogusteriade
Hi!

I'm trying to estimate this equation in eviews 6.0 (it's a factor augmented panel regression):
Ajt=aj+b*Bj,t+c1,j*F1,t+c2,j*F2,t

I've created a balanced panel workfile of dimensions TxN and I don't know how to import data for the factors F1,t and F2,t since their dimension is Tx1 - they are the same for all cross-sections in a given year - but eviews automaticaly complets the data with N/A until its dimension becomes TxN. (I want to obtain cross-section specific coefficients).

Can anybody help?

Thank you!

Re: Factor augmented panel estimation

Posted: Mon Jun 08, 2009 4:06 pm
by EViews Gareth
Create an annual page (i.e. not a panel page) in the workfile, put the data into that page, then copy it across to the panel. EViews will automatically fill in the cross-sections.

Re: Factor augmented panel estimation

Posted: Tue Jun 09, 2009 2:26 am
by gogusteriade
Thank you! I managed to do that, but I don't know how to estimate the equation imposing a homogenous coefficient on B and country-specific ones for the other variables. Is it possible to do that in eviews?