Re: st: Reemedy for serial correlation in Panel Data
10 Apr 2012 03:48:05 +0100
Thank you for your valuable comments!
David (Greenberg) do you believe that the size of my data(T=10, N=9) is
forbidding for empirical research?
I am using Regional Trends which unfortunately goes back 10 years the most
for my variables of interest. And regions ofcourse are limited to 9. Data
on subregions (so that I could increase N) does not exist and where it
exists goes only back to 2-3 years.
I have taken all precautions to maximise the reliability of results and
intensively analyse residuals by region and panel after each regression to
ensure that coefficients are not the outome of 1 or few influential
observations. I also apply all sort of tests: collinearity, normality of
idiosyncratic component(to enable correct inference from t-statistics),
cross sectional dependance, etc
So, do you think there is no way an empirical research should move forward
with such a small size?