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sigma_m
2013 Jan 04
1
plm random effect: the estimated variance of the individual effect is negative
...a's behaviour is (as far as I remember) to transparently substitute
it with 0; 'plm's is to let the estimation fail, issuing a warning. You
can try a different 'random.method' which may, or might not, solve the
problem, depending on your data.
Hint: a random effects model with sigma_mu=0 is a pooling model.
HTH
Giovanni Millo, PhD
Research Dept.,
Assicurazioni Generali SpA
Via Machiavelli 3,
34132 Trieste (Italy)
tel. +39 040 671184
fax +39 040 671160
------------ original message ------------------
Message: 49
Date: Thu, 3 Jan 2013 13:23:07 -0800
From: David Winsemius <d...