I have an unbalanced panel dataset.
I am trying to run "xtrc" random coefficient model and am getting the following error that says that variables were dropped due to collinearity. I am also attaching the correlation table, which clearly shows that the correlation between revt_log (DV) and xrd_lag1_log (IV) is 0.2439 which is not high at all so the model should have run. So why am I getting the said error when running xtrc?
[All variables are log-transformed, if that is somehow related to the issue. Also, I am not just getting this error with the IV -xrd_lag1_log but with all other variables when I run them individually. That means the error is not specific to a specific IV - xrd_lag1_log]
Thanks in advance!
I am trying to run "xtrc" random coefficient model and am getting the following error that says that variables were dropped due to collinearity. I am also attaching the correlation table, which clearly shows that the correlation between revt_log (DV) and xrd_lag1_log (IV) is 0.2439 which is not high at all so the model should have run. So why am I getting the said error when running xtrc?
[All variables are log-transformed, if that is somehow related to the issue. Also, I am not just getting this error with the IV -xrd_lag1_log but with all other variables when I run them individually. That means the error is not specific to a specific IV - xrd_lag1_log]
Thanks in advance!
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