SHAZAM Community
Ask Your Question
1

Static Panel Data with identical cross section variables

asked 2011-06-08 12:12:44 +0000

Pantera gravatar image

updated 2011-08-26 16:45:49 +0000

Hi all, I am doing a static panel analysis: four independent variables, seven cross sections and a time span of 13 years. I want to include a variable (exchange rate) which varies over time but is identical (has the same value) for each cross section. Question: Is it possible to use an independent variable in the regression which has an identical value-sequence for all cross section members?

Regards, P

edit retag flag offensive close merge delete

1 answer

Sort by ยป oldest newest most voted
2

answered 2011-06-09 15:44:55 +0000

Diana gravatar image

Hello The answer is yes -- explanatory variables can have identical values for each cross-section.

If you are using the POOL command for estimation the data for each cross-section is stacked one after another. The exchange rate variable will have the same 13 numbers repeated for each cross-section.

If you are using the SYSTEM command for estimation then a set-up may specify one equation for each cross-section. Each equation will have the same variable name for the interest variable in the list of explanatory variables. Diana Whistler University of British Columbia

edit flag offensive delete link more
Login/Signup to Answer

Question Tools

Stats

Asked: 2011-06-08 12:12:44 +0000

Seen: 474 times

Last updated: Aug 26 '11