Panel Data Regression 3of9 – Fixed Effects LSDV

This 3rd of 9 videos in the series shows how to run fixed effects Least Squares Dummy Variable (LSDV) regression on both Excel and EViews. It provides a practical understanding of how to design and run the model outside of the built-in EViews application. I also interpret the results.

[jannisbrockhaus]

every video of this playlist is very easy to understand, comprehensive and just efficient.
thanks a lot!
great examples as well

[ZhongdaSun]

Thank you so much Professor Pat, it is very clear and concise!

[SM_]

Sir, you are marvelous. Lots of respect for u from India

[biancafeitoza]

Thank you very much!! Very helpful.
Greatings from Brazil.

[rutniken]

Thank you so much, easy to understand

[Indahem]

can we use LSDV to test the effect of bond rating on bond price performance? (for example: if company's bond rating is AAA, D1=0, otherwise is 0)?

[AbdulJabbar-vvhr]

if we change the base group will the value of b1 and b2 be impacted other than b0??

[mynameisjoejeans]

Great video prof, thank you. Can LSDV be used on endogenous variables? and Can it be used with time lags?

[khotibulumam]

Excuse me mr. Pat Obi can i have your data if you don't mind?

[ManduPonkanshi]

hi sir I only have 20yrs of data and 6 dummy variable but I am getting near singular matrix error pls help me

[daffananda]

Excuse me sir, is that necessary to do the classic assumptions test (heteroskedasticity and multicoliniarity) in LSDV?

[rohtashbhall]

what about dummy variable D1 to D9. Where is D3 TO D8 along with B3 to B8. Thanks

[vimckbx]

Excuse me sir, may I ask if LSDV is FE-OLS, I often see FE-OLS in papers recently but not sure if it is the same as LSDV?

[davidmontano]

Hi!

In this example, LSDV model would suggest dummy Variable for Firm 7 (D7) is not statistically significant. As far as I know, to correctly interpret all other dummies we need to ensure that every single dummy coefficient must be indeed significant. Is this correct? Ignoring D7 significance yields in wrong conclusions?

Thank you in advanced for your effort!

[Looooly]

how can we add a time fixed effects in addition to the firms fixed effects? thank you.

[dumitrachecristina]

Hello and thank you for the great videos. One question if you don't mind: although I have 24 countries and made 23 dummy variables, I am having a problem when running the equation because I get the error "Near singular matrix". Would you be so kind and help me solve the problem, please?

[matheusmeneghin]

Do i Also include the controlled variables or can i ignore them for fixed effect and put just dependent and independent

[TinaTina-xnon]

If I have hundreds of firms, I have to create hundreds of dummy variables?

[agoogleuser]

Excuse me sir, My panel data set is non stationery at level and stationery at first difference. What is the next step I need to follow? Thanks in advance.

[datax-analytviews]

If am having 28 companies, how many dummys should i estimate with the model?