Re: [Gretl-users] Fixed effects model
Am 25.05.2015 um 13:47 schrieb Liliya Netskar:
Hi guys!
I have a problem with Gretl panel fixed effects model. I created dummy
variables to control for fixed effects (it was a proper way), but Gretl
leaves these dummies out. To represent 4 categoeries I used 3 dummies to
avoid perfect multicolinearity. In the end I habe a biased result
because of the omitted dummies. Is there a solution for the problem?
Gretl typically leaves out regressors (including dummies) for a reason
-- usually collinearity. In the case of panel fixed effects one
immediately thinks of time-invariant regressors as a reason, but this is
of course just speculation without knowing any details. Please show us
the estimation output.
cheers,
sven