[R] Fixed effects estimators doesn't drop or omit

[Alex I]

The title says it all, really. Fixed effects in the plm package still estimates coefficients for time invariant variables. Now, if this isn't normal, you might think this is a data entry issue, but I don't think it is a data entry issue. Hausman-Taylor in the plm package correctly distinguishes the time invariants from the time variants using the same data. 

So, is this normal? Am I supposed to omit them myself? Do I run the regression including them but excluding their results when I display it to my reader? See below for the code I am using.


library(plm)
mydata <- read.csv(file="FILE.csv",head=TRUE,sep=",")


Y <- cbind(mydata$lnTRADE) 
X <- cbind(mydata$lnGDPi, mydata$lnGDPj, mydata$lnDIST, mydata$lnIPRi, mydata$lnIPRj, mydata$lnGDP.SIM, mydata$C.BORD, mydata$C.LANG, mydata$EUZ) 


# Fixed effects panel regression 
fixed <- plm(Y ~ X, data=pdata, model= "within") 
summary(fixed) 
pbgtest(fixed)
coeftest(fixed, vcov = vcovHC(fixed, type = "HC0"))


library(plm)
mydata <- read.csv(file="FILE.csv",head=TRUE,sep=",")

Y <- cbind(mydata$lnTRADE) 
X <- cbind(mydata$lnGDPi, mydata$lnGDPj, mydata$lnDIST, mydata$lnIPRi, mydata$lnIPRj, mydata$lnGDP.SIM, mydata$C.BORD, mydata$C.LANG, mydata$EUZ) 

# Fixed effects panel regression 
fixed <- plm(Y ~ X, data=pdata, model= "within") 
summary(fixed) 
pbgtest(fixed)
coeftest(fixed, vcov = vcovHC(fixed, type = "HC0"))
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