OK. Thank you again for the reply. I have another question now. My country variable is currently not defined as an integer. Does this mean my code (posted below): proc sort data=Pooled_Panel; by Year Country; run; proc panel data=Pooled_Panel; model ln_Rawshare = EFWS ln_h /ranone; id Year Country; run; is not telling SAS to run a one-way random effects model on time? Or am I correctly coding for such a model, and you are just saying that because Country is not an integer, the hausman m-statistic is going to be inaccurate? If the code above (with Country NOT an integer) is wrong, I'm not sure what to do. If I do the following: proc sort data=Pooled_Panel; by Country Year; run; proc panel data=Pooled_Panel; model ln_Rawshare = EFWS ln_h /ranone; id Country Year; run; (sort by Country and then Year) then I am going to be estimating a one-way random effects model on Country, correct? As far as I know, if I sort by Country and then Year, there is no "ranonetime" option or something similar that is analogous to the "fixonetime" option when doing fixed effects. Are you saying that the Country variable(or whatever cross-section variable is being used) always needs to be an integer anytime a random effects model with respect to Year(or whatever time-series variable is being used) is run? Is this also true for a fixed effects model on time? Another way, and perhaps a better way, to ask my question is this. When it comes to fixed and random effects models (fixed time effects, fixed country effects, random time effects, and random country effects), when is it okay to have the Country variable coded as the country name, and when must it be coded as an integer? I'm sorry to keep pestering you, but I greatly appreciate the help! I'm switching back to SAS from MATLAB, and I want to make sure my code is giving me what I want it to.
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