[R-SIG-Finance] error message in PLM:

[Joshua Ulrich]

Hi Wei-han Liu,

This is not a finance question, so you will likely get faster/better
responses by re-posting to R-help.  It would also increase the
likelihood someone will respond if you include a reproducible example
of the error (as suggested in the posting guide).

Best,
--
Joshua Ulrich  |  about.me/joshuaulrich
FOSS Trading  |  www.fosstrading.com

R/Finance 2013: Applied Finance with R  | www.RinFinance.com


On Wed, Mar 6, 2013 at 6:46 PM, Wei-han Liu <weihanliu2002 at yahoo.com> wrote:
> Hi R users:
>
> I am using the plm package for linear panel data analysis but encountered the following message when I try plm function to estimate an random model with individual effect.
>
>> data.re.ind <- plm(X.RETURN. ~ IOB + IOBS,data=E,model="random",effect = "individual")
> Error in swar(object, data, effect) :  the estimated variance of the individual effect is negative
>
> I have tried the other estimation methods ("walhus", "amemiya", "nerlove") in addition to method "swar" but it does not help.
>
> I have googled for answer but I have not found the solution yet. Would some people help in this regard?
>
> Best regards,
>
> Wei-han Liu
>         [[alternative HTML version deleted]]
>
>
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