The coefficients table shows that value and capital have a significant positive effect on Gross investment.Now that you have the regression results, you can discuss with the students the key pieces of information being displayed, including the coefficients (the intercept representing the fixed costs, and the X variable 1 representing the variable costs) and how to interpret the R square and adjusted R square values. The p-value associated to the F statistic shows that the model is significantly different from a null model. Interpretation of an Panel regression output For fixed effects, you should select a Within model.Ĭlick OK to launch computations. Select a Random model to consider time and panel units effect as random. This will build a model that controls both for time and panel units. In the Options tab, choose the two-ways effect. Select the Year data under the Time field and Firm data under the Individuals field. Select the value & capital data under the Quantitative Explanatory Variables field. In the general tab, select the inv column under the dependent variables field. Open XLSTAT-R / plm / Panel regression(plm) Setting up a Panel regression in XLSTAT-R The goal here is to model gross investment according to value and capital, while controlling for Firm (panel units) and year (time).

The data contains 5 columns corresponding to: (2010) “The Grunfeld Data at 50”, German Economic Review, 11(4), pp. thesis, Department of Economics, University of Chicago. Grunfeld, Yehuda (1958) The Determinants of Corporate Investment, Ph.D. (2013) Econometric Analysis of Panel Data, 5th ed., John Wiley and Sons (2001) Econometric Analysis of Panel Data, 2nd ed., John Wiley and Sons īaltagi, Badi H. The data correspond to Grunfeld’s investment data. Data set for launching a Panel Regression analysis in XLSTAT-R

The panel regression function developed in XLSTAT-R calls the plm function from the plm package in R (Yves Croissant). Panel regression allows controlling both for panel unit effect and for time effect when estimating regression coefficients. Those units can be firms, countries, states, etc. It is widely used in econometrics, where the behavior of statistical units (i.e.

Panel regression is a modeling method adapted to panel data, also called longitudinal data or cross-sectional data. This tutorial shows how to set up and interpret a panel regression using the XLSTAT-R engine in Excel.

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