Hi there,
I have a panel of bank data for 12 years and investigate on the
effect of interest rates on risk-taking.
Although every characteristic of the dataset says DPANEL I have some
problems getting correct estimations.
The main problem is one of multicollinearity: The time dummies and
two of my regressors lead to omitting two time dummies. Since not
all of them are significant I could kick them out before and have
the same time dummy specification through all models. The
multicollinearity problems starts in FE estimation and stays in
DPANEL.
Since including the significant time dummies is crucial, I started
to replicate the --time switch.
This works for the GRTEL DPANEL method, but how to tell GRETL to
perform --dpdstyle without the --time switch?
Is this possible?
Thanks in advance
Leon