[R] Regressing the residuals on the country dummies

Linus Holtermann holtermann at hwwi.org
Fri Oct 2 21:31:07 CEST 2015


Hi,

You have panel data or cross-sectional data? In the case you use cross-sectional data and "countries" are your observations (no repeated measure of them) and you regress the country-dummies on your residuals of the forgone regression, then there are as many regressors as observations. Consequently, is it not possible to estimate such a model since there are no degrees of freedom left.

Mit freundlichen Grüßen


Linus Holtermann
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-----Ursprüngliche Nachricht-----
Von: R-help [mailto:r-help-bounces at r-project.org] Im Auftrag von Johanna von Bahr
Gesendet: Donnerstag, 1. Oktober 2015 21:15
An: r-help at r-project.org
Betreff: [R] Regressing the residuals on the country dummies

I’m trying to estimate a model regressing the residuals on the country dummies as follows; model.resC <- lm(model2$res ~ as.factor(Country))
summary(model.resC)

As I call the model I get the following results regarding the residuals:

"ALL 90 residuals are 0: no residual degrees of freedom!"

What has gone wrong?
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