| 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 |
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 | 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 |
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Asked: Jun 08 '11
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Last updated: Aug 26 '11
