Dear readers,
I have a problem with estimating a static panel model. I have collected data on GFCF and 11 other variables from 1960 to 2013 on the World Bank website and data on federal reserve rate (fedrate) treasuries and MBS held on the Federal Reserve website, which I incorporated manually on excel. So I have 59 countries and 3186 observations, country is my panel variable and time my time variable . When trying to estimate the following model using the options for fixed effect or random effect (so to determine afterwards wich one to use):
xtreg gfcf fedrate, fe
I have the following message: " independent variables are collinear with the panel variable country"
However, when estimating the following:
xtreg gfcf gdp, fe
I don't have any problems.
I think the problem comes from the variables collected from the Fed and added manually to the dataset (as it occurs only when these are used as independent variables). Those variables are only available for the US, so there are dots for all other countries. Please find attached my dataset.
I tried to find a solution on the forum and else where, but didn't find anything that can help me fix the problem. Any help/advice would be really appreciated.
Thank you in advance for your answer.
I have a problem with estimating a static panel model. I have collected data on GFCF and 11 other variables from 1960 to 2013 on the World Bank website and data on federal reserve rate (fedrate) treasuries and MBS held on the Federal Reserve website, which I incorporated manually on excel. So I have 59 countries and 3186 observations, country is my panel variable and time my time variable . When trying to estimate the following model using the options for fixed effect or random effect (so to determine afterwards wich one to use):
xtreg gfcf fedrate, fe
I have the following message: " independent variables are collinear with the panel variable country"
However, when estimating the following:
xtreg gfcf gdp, fe
I don't have any problems.
I think the problem comes from the variables collected from the Fed and added manually to the dataset (as it occurs only when these are used as independent variables). Those variables are only available for the US, so there are dots for all other countries. Please find attached my dataset.
I tried to find a solution on the forum and else where, but didn't find anything that can help me fix the problem. Any help/advice would be really appreciated.
Thank you in advance for your answer.
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