[R] Regressing the residuals on the country dummies

[Linus Holtermann]

Hi,

You have panel data or cross-sectional data? In the case you use cross-sectional data and "countries" are your observations (no repeated measure of them) and you regress the country-dummies on your residuals of the forgone regression, then there are as many regressors as observations. Consequently, is it not possible to estimate such a model since there are no degrees of freedom left.

Mit freundlichen Grüßen


Linus Holtermann
Hamburgisches WeltWirtschaftsInstitut gemeinnützige GmbH (HWWI)
Heimhuder Straße 71
20148 Hamburg
Tel +49-(0)40-340576-336
Fax+49-(0)40-340576-776
Internet: www.hwwi.org
Email: holtermann at hwwi.org
 
Amtsgericht Hamburg HRB 94303
Geschäftsführer: Prof. Dr. Henning Vöpel
Prokura: Dipl. Kauffrau Alexis Malchin
Umsatzsteuer-ID: DE 241849425


-----Ursprüngliche Nachricht-----
Von: R-help [mailto:r-help-bounces at r-project.org] Im Auftrag von Johanna von Bahr
Gesendet: Donnerstag, 1. Oktober 2015 21:15
An: r-help at r-project.org
Betreff: [R] Regressing the residuals on the country dummies

I’m trying to estimate a model regressing the residuals on the country dummies as follows; model.resC <- lm(model2$res ~ as.factor(Country))
summary(model.resC)

As I call the model I get the following results regarding the residuals:

"ALL 90 residuals are 0: no residual degrees of freedom!"

What has gone wrong?
______________________________________________
R-help at r-project.org mailing list -- To UNSUBSCRIBE and more, see https://stat.ethz.ch/mailman/listinfo/r-help
PLEASE do read the posting guide http://www.R-project.org/posting-guide.html
and provide commented, minimal, self-contained, reproducible code.