Hello,

I'm trying to run a regression predicting trade flows between importers and
exporters.  I wish to include both year-importer dummies and year-exporter
dummies.  The former includes 1378 levels, and the latter includes 1390
levels.  I have roughly 100,000 total observations.

When I'm using lm() to run a simple regression, it give me a "cannot
allocate ___" error.  I've been able to get around time-demeaning over one
large group, but since I have two, it doesn't work in the correct way.  Is
there a more efficient way to handling a model matrix this large in R?

Thanks for your help.

Alan Spearot

-- 
Alan Spearot
Assistant Professor - International Economics
University of California - Santa Cruz
1156 High Street
453 Engineering 2
Santa Cruz, CA 95064
Office:  (831) 459-1530
acspearot@gmail.com
http://people.ucsc.edu/~aspearot

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