Dear researchers,
I estimate balanced panel data N = 77, T = 6, in which the dependent variable is bounded and ranges from 0 to 1 (fractional dependent variable).
To take into account the fractional nature of the dependent variable, I decided to evaluate the model using the frm package (fractional regression models).
Below is the model that was planned to be evaluated using the frm package:
frm shareorg_ecoinn9_1 illness_genit_lag1 ERI_LAG1 density_nord_lag1 shresearch_personnel_lag1 lngrpu_lag1 i.year, vce(r)
However, instead of the results, the program produced an error that I don't quite understand:
The dependent variable has values outside the unit interval
r (198);
Could you tell me why this error could have come out if the frm package is intended for evaluating fractional dependent variables, and the dependent variable lies in the interval [0;1] ?
And to what extent can the frm package be appropriate for panel data?
I would be grateful for any comments and advice.
Kind regards,
Karina
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