Help in panel data analysis

[Guest]

Hello, I really request for your help in doing panel data analysis. My data is: DV (ROA) IV( interest, exchange, inflation, GDP) when i try xtreg ROA Interestrate GDP ExchangeRate , re told all my independent variables are ommited due to collinearity and insufficient observation please help

GDP	Year	Interest rate	Exchange Rate	Inflation Rate	ROA	identity
4.9	13-Jan	18.13	87.611	3.67	1.78%	1
5.9	13-Feb	17.84	86.236	4.45	0.06%	2
5.7	13-Mar	17.73	85.639	4.11	4.55%	3
5.4	13-Apr	17.87	83.821	4.14	4.12%	4
5.9	13-May	17.45	85.124	4.05	4.79%	5
	13-Jun	16.97	86.008	4.91	6.18%	6
	13-Jul	17.02	87.28	6.03	3.21%	7
	13-Aug	16.96	87.597	6.67	-1.50%	8
	13-Sep	16.86	86.646	8.29	4.55%	9
	13-Oct	17	85.147	7.76	0.16%	10
	13-Nov	16.89	86.993	7.36	1.13%	11
	13-Dec	16.99	86.31	7.15	3.95%	12
	14-Jan	17.03	86.236	7.21	-2.60%	13
	14-Feb	17.06	86.326	6.86	6.64%	14
	14-Mar	16.91	86.441	6.27	2.14%	15
	14-Apr	16.7	86.871	6.41	0.83%	16
	14-May	16.97	87.797	7.3	1.73%	17
	14-Jun	16.36	87.627	7.39	2.27%	18
	14-Jul	16.91	87.804	7.67	2.76%	19
	14-Aug	16.26	88.394	8.36	3.79%	20
	14-Sep	16.04	89.279	6.6	5.23%	21
	14-Oct	16	89.352	6.43	-1.36%	22
	14-Nov	15.94	90.179	6.09	5.40%	23
	14-Dec	15.99	90.598	6.02	0.14%	24
	15-Jan	15.93	91.674	5.53	3.93%	25
	15-Feb	15.47	91.423	5.61	0.65%	26
	15-Mar	15.46	92.335	6.31	1.10%	27
	15-Apr	15.4	94.6	7.08	1.25%	28
	15-May	15.26	97.781	6.87	3.63%	29
	15-Jun	16.06	98.639	7.03	3.54%	30
	15-Jul	15.75	102.521	6.62	4.94%	31
	15-Aug	15.68	103.87	5.84	1.72%	32
	15-Sep	16.82	105.293	5.97	0.70%	33
	15-Oct	16.58	101.8	6.72	3.64%	34
	15-Nov	17.16	102.114	7.32		35
	15-Dec	18.3	102.311	8.01		36
	16-Jan	18	102.283	7.78		37
	16-Feb	17.91	101.697	6.84		38
	16-Mar	17.87	101.334	6.45		39
	16-Apr	18.04	101.141	5.27		40
	16-May	18.22	100.831	5		41
	16-Jun	18.18	101.102	5.8		42
	16-Jul	18.1	101.389	6.4		43
	16-Aug	17.66	101.359	6.26		44
	16-Sep	13.86	101.262	6.34		45
	16-Oct	13.73	101.459	6.47		46
	16-Nov	13.67	101.877	6.68		47
	16-Dec	13.66	102.486	6.35		48
	17-Jan	13.66	103.956	6.99		49
	17-Feb	13.69	103.342	9.04		50
	17-Mar	13.61	103	10.28		51
	17-Apr	13.61	103.222	11.48		52
	17-May	13.71	103.381	11.7		53
	17-Jun	13.66	103.712	9.21		54
	17-Jul	13.7	103.911	7.47		55
	17-Aug	13.65	103.143	8.04		56
	17-Sep	13.69	103.247	7.06		57
	17-Oct	13.71	103.694	5.72		58
	17-Nov	13.68	103.253	4.73		59
	17-Dec	13.64	103.232	4.5		60

[Carlo Lazzaro]

Guest:
set aside for a while that what you typed and what Stata gave you back should be posted within CODE delimiters, your problem are, in all likelihood, caused by:
- the lack of a panel identifier. As per your data, you have one -identity- per observation, that indicates a cross-sectional (and not a panel) dataset;
- your dataset is plagued with missing values. As you might be already aware of, Stata applies listwise deletion to observations with missing values in any variable.

[Guest]

/*
xtreg ROA Interestrate ExchangeRate InflationRate GDP, fe cluster(identity)
note: Interestrate omitted because of collinearity
note: ExchangeRate omitted because of collinearity
note: InflationRate omitted because of collinearity
note: GDP omitted because of collinearity

Fixed-effects (within) regression Number of obs = 5
Group variable: identity Number of groups = 5

R-sq: Obs per group:
within = . min = 1
between = . avg = 1.0
overall = . max = 1

F(0,4) = .
corr(u_i, Xb) = . Prob > F = .

(Std. Err. adjusted for 5 clusters in identity)
-------------------------------------------------------------------------------
| Robust
ROA | Coef. Std. Err. t P>|t| [95% Conf. Interval]
--------------+----------------------------------------------------------------
Interestrate | 0 (omitted)
ExchangeRate | 0 (omitted)
InflationRate | 0 (omitted)
GDP | 0 (omitted)
_cons | .0306 . . . . .
--------------+----------------------------------------------------------------
sigma_u | .02060248
sigma_e | .
rho | . (fraction of variance due to u_i)
-------------------------------------------------------------------------------
/*

I really dont know what to do, been stuck for hours and thank you for your help sir.

[Guest]

The missing values are not neccessarily missing i.e. ROA is return on asset of 34 banks under study, then GDP is growth domestic product which is for 2013-2017 (5 observations) but other variables have 60 observations (yearly for 5 years). is is possible to fix the problem and perform panel data analysis
Thank you sir.

[Carlo Lazzaro]

Guest:
you switched from -re- to -fe- specification, but changing specification does not fix the absence of multiple observations for the same -panelid-.
Actually, you have 5 panels and 5 observations: this is a clear sign of a cross-sectional dataset. Hence, you should use -regress- and forget -xtreg-.
This issue is far more relevant than missing data.
As an aside, I take the liberty to recommend you to read/study any decent textbook on panel data econometrics.
Stata users dealing with this stuff usually have on their bookshelves: https://www.stata.com/bookstore/micr...metrics-stata/

[Guest]

Hi Carlo,
Thank you so much for your help. Let me go through and reach out if got stuck on the way.