OK, I've had a look at the gretl documentation on panel models. I
get how to set up panel data, and the basics on panel
analysis. Apparently, if I have time-invariant data (literacy rates
would be nearly invariant over the period I'm talking about), I have
to use a random-effects model, though that poses a problem if the
other IV's are correlated with the panel units (countries, in this
case). I think I can negotiate that problem, though....
My next question is, how do I handle lags and the need for
instruments? The panel documentation mentions this issue, but
doesn't seem to go into it, unless it's in another part of the manual.
Scott