Hello everybody, I am relatively new to R and struggling with the following problem: I want to estimate a system of equations in R using the plm() command. Unfortunately the data have a panel structure which should be exploited during the estimation process. Hence I decided for a fixed/random effects setup. In the systemfit()-command one can actually define a system of equations and estimate simultaneously while certain parameter restriction can be imposed. But this only works for a pooling approach, i.e. ignoring the panel structure. The code is the following: first.eq <- y ~ c + b1*x1 + b2*x2 + u #First equation second.eq <- z ~ c + b1*x1 + b2*x2 + u #Second equation third.eq <- w ~ c + b1*x1 + b2*x2 + u #Third equation As you can see, the explanatory variables are the same over all equations, however, the endogenous variable is changing. What I want is to define a system like: system.eq <- list(first.eq, second.eq, third.eq) and estimate ist by: plm(system.eq, model = "within") Thank you very much for your help! -- View this message in context: http://r.789695.n4.nabble.com/Estimating-simultaneous-equations-in-plm-tp4660624.html Sent from the R help mailing list archive at Nabble.com.