Hi guys
Im trying to run a GMM regresson an a larger panel-data set (first 50 rows of data are below). I use the plm package (pgmm). I would like to run the following code for the regression:
gmmCKaopen <- pgmm(log(GDP) ~ lag(log(GDP), 1:1)+lag(ckaopen, 1:1) + diff(Initial.Income, 1:1) + diff(Government.consumption, 1:1)
|lag(log(GDP), 1:1)+lag(ckaopen, 1:1)
data = PData_G_Ckaopen,
effect = "twoways",
model = "twosteps",
)
The following error always occurs:
[Error in solve.default(crossprod(WX, t(crossprod(WX, A1)))) : Lapack routine dgesv: system is exactly singular: U[9,9] = 0]
Has anyone an idea what I have to change that I can run this regression properly.
Data:
GDP ckaopen Initial.Income Government.consumption
Bangladesh-1970 140.00271 NA 140.00271 0.03335270
Bangladesh-1971 133.55142 NA 133.55142 0.03379600
Bangladesh-1972 94.38168 -1.757101 94.38168 0.03456111
Bangladesh-1973 119.55974 -1.757101 119.55974 0.03599019
Bangladesh-1974 182.01999 -1.757101 182.01999 0.05493962
Bangladesh-1975 277.57064 -1.081418 277.57064 0.05869221
Bangladesh-1976 141.19717 -1.757101 141.19717 0.14966388
Bangladesh-1977 131.37324 -1.757101 131.37324 0.16965896
Bangladesh-1978 176.03395 -1.757101 176.03395 0.14669737
Bangladesh-1979 200.76966 -1.757101 200.76966 0.15294278
Bangladesh-1980 227.75195 -1.757101 227.75195 0.14808303
Bangladesh-1981 247.64962 -1.757101 247.64962 0.15393747
Bangladesh-1982 220.71881 -1.757101 220.71881 0.14891361
Bangladesh-1983 204.41768 -1.757101 204.41768 0.14592518
Bangladesh-1984 213.99666 -1.757101 213.99666 0.14477026
Bangladesh-1985 245.45390 -1.757101 245.45390 0.13990422
Bangladesh-1986 233.65805 -1.757101 233.65805 0.15099858
Bangladesh-1987 253.97446 -1.757101 253.97446 0.14051959
Bangladesh-1988 270.69960 -1.757101 270.69960 0.14034747
Bangladesh-1989 285.82921 -1.757101 285.82921 0.14981908
Bangladesh-1990 306.26870 -1.757101 306.26870 0.14068563
Bangladesh-1991 293.16042 -1.757101 293.16042 0.14220999
Bangladesh-1992 293.64500 -1.081418 293.64500 0.14563771
Bangladesh-1993 300.55575 -1.081418 300.55575 0.15749161
Bangladesh-1994 299.53304 -0.031356 299.53304 0.15656552
Bangladesh-1995 329.42408 -0.031356 329.42408 0.15148772
Bangladesh-1996 394.71748 -1.081418 394.71748 0.14238423
Bangladesh-1997 401.49869 -1.081418 401.49869 0.11078252
Bangladesh-1998 407.42919 -1.081418 407.42919 0.10166239
Bangladesh-1999 409.54320 -1.081418 409.54320 0.08855877
Bangladesh-2000 418.06897 -1.081418 418.06897 0.07495249
Bangladesh-2001 415.03443 -1.081418 415.03443 0.06737542
Bangladesh-2002 413.08025 -1.081418 413.08025 0.06804951
Bangladesh-2003 446.31066 -1.081418 446.31066 0.06985673
Bangladesh-2004 475.29192 -1.081418 475.29192 0.07041883
Bangladesh-2005 499.46194 -1.081418 499.46194 0.06887637
Bangladesh-2006 509.64014 -1.081418 509.64014 0.06758896
Bangladesh-2007 558.05186 NA 558.05186 0.06355464
Bangladesh-2008 634.98706 NA 634.98706 0.05938854
Bangladesh-2009 702.26441 NA 702.26441 0.05882421
Bangladesh-2010 781.15359 NA 781.15359 0.05633162
Bangladesh-2011 861.75844 NA 861.75844 0.05380724
Bangladesh-2012 883.10500 NA 883.10500 0.06018874
Bangladesh-2013 981.83988 NA 981.83988 0.05950897
Bangladesh-2014 1118.85366 NA 1118.85366 0.05902864
Bangladesh-2015 1248.45340 NA 1248.45340 0.05753380
Bangladesh-2016 1401.62063 NA 1401.62063 0.06004748
Bangladesh-2017 1563.91370 NA 1563.91370 0.05908680
Bangladesh-2018 1698.35039 NA 1698.35039 0.06327812
Bangladesh-2019 1855.73982 NA 1855.73982 0.06525949
Bangladesh-2020 NA NA NA NA