Re: [Gretl-users] Random-effects panel-data
On Thu, 16 Feb 2012, Helgi Tomasson wrote:
I am doing a panel-data exercise from Greene (5th. ed. ) exercise
13.1
Why do I get precisely the same estimates in pooled OLS as in the
random-effects panel model?
Here's the answer to your question
'Within' variance = 3.0455
'Between' variance = 0.113088
theta used for quasi-demeaning = 0
In finite samples, it may well happen that the estimate for theta goes
outside its 'natural' limits (the 0-1 interval), in which case it's force
d to 0. See any textbook for details (eg Greene --- used to be section
13.4 in the 5th edition, don't known in more recent versions).
Riccardo (Jack) Lucchetti
Dipartimento di Economia
Università Politecnica delle Marche
r.lucchetti(a)univpm.it
http://www.econ.univpm.it/lucchetti