Am 12.03.2008 05:58, Scott David Orr schrieb:
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.
Well actually I haven't worked yet with the panels&gretl combination, so
I can't help you with that. Dynamic panels are not trivial (but
fashionable), maybe you want to use something like the Arrellano/Bond
estimator. Of course you could perform that by cleverly using gretl's
GMM framework, but I think it's not natively implemented yet. (Somebody
correct me please.)
good luck,
sven