Minimum number of observations required.

Questions related to panel (pooled cross-section time series) data.
tahir
Posts: 11
Joined: Tue Mar 13, 2012 9:32 am

Minimum number of observations required.

Unread post by tahir »

Dear Sir
I have 9 years data for 5 banks. Thus 45 observations. I want to know what is the minimum number of observations required to estimate fixed effect model so that one is confident about coefficients. Thanks

Tahir
TomDoan
Posts: 7814
Joined: Wed Nov 01, 2006 4:36 pm

Re: Minimum number of observations required.

Unread post by TomDoan »

That's probably fine. You obviously don't get consistent estimates of the individual-specific intercepts, but assuming the underlying model is correct (that the slope coefficients are fixed across individuals), you have enough to get reasonable estimates of those.
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