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  • Panel DOLS Error

    - I am trying to do Panel group mean DOLS with 6 panels (countries) each one has 25 observations including: log(GDP per capita) log(labor force) log(gross capital per capita) log(renewable consumption) log(imports or exports)
    - When I do the test for four variables:
    xtpedroni ly lk ll lrec
    everything works fine. but when I apply all variables
    xtpedroni ly lk ll lrec lim
    I got this error:
    matrix not positive definite
    r(506);
    What do you think the problem is?

  • #2
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