Hello,
I've got some questions on including year effects in my regression model.
My data runs from 1985 to 2012.
When including year effect the first 2 years (1985 and 1986) are dropped. Can someone explain why these are dropped and what this implies?
Furthermore, the first few years are highly insignificant, but from 1992 everything is significant. What would be the reason?
Lastly, the first few years have a positive coefficient, but from 1990 it becomes negative. It seems like almost every year is becoming more negative. Can someone explain to me how I should interpret this.
P.S. My independent variable is 'Real GDP per Capita'. Dependent variables are related to infrastructure, trade, health, etc.
Thanks in advance!
Regards,
Pvunderink
I've got some questions on including year effects in my regression model.
My data runs from 1985 to 2012.
When including year effect the first 2 years (1985 and 1986) are dropped. Can someone explain why these are dropped and what this implies?
Furthermore, the first few years are highly insignificant, but from 1992 everything is significant. What would be the reason?
Lastly, the first few years have a positive coefficient, but from 1990 it becomes negative. It seems like almost every year is becoming more negative. Can someone explain to me how I should interpret this.
P.S. My independent variable is 'Real GDP per Capita'. Dependent variables are related to infrastructure, trade, health, etc.
Thanks in advance!
Regards,
Pvunderink
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