Re: [Gretl-users] fixed effects panel estimation
If Iveta has enough data a SUR (or some other system) estimate would
give estimates of the "gravity" effect and would also allow the slope
estimates to vary between groups. It would also allow her to test the
validity of various restrictions including those required for stacked
OLS.
John
2009/7/24 Allin Cottrell <cottrell(a)wfu.edu>:
On Sat, 18 Jul 2009, Iveta Paterova wrote:
> thank you Allin for your reply.But I still do not know which estimator
> to use for gravity if OLS seems to be unappropiate (low R squared) for
> gravity equation?
A low R-squared value is not in itself a signal that OLS is
inappropriate. But an alternative is the random effects model.
Allin Cottrell
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John C Frain
Economics Department
Trinity College Dublin
Dublin 2
Ireland
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