The HPPANEL Procedure

MODEL Statement

  • MODEL response = regressors </ options>;

The MODEL statement specifies the regression model and the error structure that are assumed for the regression residuals. The response variable is regressed on the independent variables (regressors). You can specify only one MODEL statement and only one response.

The error structure is specified by the FIXONE, FIXONETIME, FIXTWO, RANONE, and RANTWO options.

You can specify the following options after a slash (/).

FIXONE

requests that a one-way fixed-effects model be estimated, where the one-way model corresponding to cross-sectional effects only.

FIXONETIME

requests that a one-way fixed-effects model be estimated, where the one-way model corresponding to time effects only.

FIXTWO

requests that a two-way fixed-effects model be estimated.

NOINT

suppresses the intercept parameter from the model.

PRINTFIXED

prints the fixed effects.

RANONE

requests that a one-way random-effects model be estimated.

RANTWO

requests that a two-way random-effects model be estimated.

VCOMP=FB | NL | WH | WK

specifies the type of variance component estimator to use.

For more information about these estimators, see the sections One-Way Random-Effects Model and Two-Way Random-Effects Model.

You can specify the following values:

FB

requests the Fuller-Battese estimator.

WK

requests the Wansbeek-Kapteyn estimator.

WH

requests the Wallace-Hussain estimator.

NERLOVE

requests the Nerlove estimator.

By default, VCOMP=WK for both balanced and unbalanced data.