[R] Error: invalid type (closure) for the variable 'time' - object specific trend

[Tobias Christoph]

Hey David,

when I used your suggested formula: *plm( log(revenue) ~ log(supply) + 
factor(town) + as.numeric(as.character(year)), data=R_Test_log_Neu) *I 
will get the same results as without considering town and year in the 
formula. So this might not the clue for taking into account a linear trend.

Please find attached the results of _str(R_Test_log_Neu):
_

Classes ‘tbl_df’, ‘tbl’ and 'data.frame':	132 obs. of  4 variables:
  $ town   : num  1 1 1 1 1 1 1 1 1 1 ...
  $ year   : num  1 2 3 4 5 6 7 8 9 10 ...
  $ revenue: num  39.9 43.3 44 43.2 39.1 ...
  $ supply : num  1 1 1 1 1 1 35 101 181 323 ...


Hope this is helpful.

Toby



Am 13.05.2017 um 16:40 schrieb David Winsemius:
>> On May 13, 2017, at 4:07 AM, Tobias Christoph <s3tochri at uni-bayreuth.de> wrote:
>>
>> Hey Peter,
>>
>> thank you. Yes, I want to have "year" in the varibale.
>> But if I use "*town*year*" as a furmula, R will create new factor
>> variable with n levels, where n = (num of towns) x (num of years). What
>> I'm trying to do is create 50 (town x year) variables such that
>> town1xyear is 1,2,3... when town== 1 and zero otherwise, repeat for
>> town2xyear, where state == 2, etc.
>>
>> It is now clear? Sorry for my bad explanations.
> I had suggested that you must provide str(R_Test_log_Neu). I'm still suggesting this would be a good idea.
>
> Since you have not done so, we can only guess at the right course to follow from your reports of problems and errors. Peter pointed out that the `time` function was in the 'stats' package (not from plm or elsewhere as I imagined). You are implying that 'year' is currently a factor value with levels that appears as the character versions of integers.
>
> You may be able to get closer to what is possible by using:
>
> plm( log(revenue) ~ log(supply) + factor(town) + as.numeric(as.character(year)),
>       data=R_Test_log_Neu)
>
> This should fix the problem noted by Peter and avoid the potentially incorrect construction of the desired linear trend.
>
> If you used the interaction operator "*" between 'town' and the numeric version of 'year' it will give you two sets of coefficients involving 'town'. The first set will be the mean deviations from the base factor level. The other set will be the differences in slopes for the time trends for each of the (factored) towns from the overall time trend/slope. And for your data you wouldbe constructing a saturated model ... as you observed in your first message (which remains in the copied thread below).
>


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