[Gretl-users] fixed effects panel estimation

John C Frain frainj at gmail.com
Fri Jul 24 06:03:38 EDT 2009


If Iveta has enough data a SUR (or some other system) estimate would
give estimates of the "gravity" effect and would also allow the slope
estimates to vary between groups.  It would also allow her to test the
validity of various restrictions including those required for stacked
OLS.

John

2009/7/24 Allin Cottrell <cottrell at wfu.edu>:
> On Sat, 18 Jul 2009, Iveta Paterova wrote:
>
>> thank you Allin for your reply.But I still do not know which estimator
>> to use for gravity if OLS seems to be unappropiate (low R squared) for
>> gravity equation?
>
> A low R-squared value is not in itself a signal that OLS is
> inappropriate.  But an alternative is the random effects model.
>
> Allin Cottrell
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-- 
John C Frain
Economics Department
Trinity College Dublin
Dublin 2
Ireland
www.tcd.ie/Economics/staff/frainj/home.html
mailto:frainj at tcd.ie
mailto:frainj at gmail.com



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