<p>I'm running both a panel analysis (the first I ever run, to be fair) and a time series analysis over a period of 50 years for twelve countries. In my estimation, one variable has a positive coefficient speaking at a time series level but has a negative coefficient. That variable I'm speaking about is the net return on net capital stock, which I used to explain the long term interest rates. So, my question is: is it normal that coefficient in panel analysis differs from the ones in the time series? And if so, what economic meaning does provide a negative correlation between long term rates and return on capital? Shouldn't be the opposite (i.e.: the higher the capital productivity, the higher the long term rates)? Thanks in advance.</p>

CC BY-SA 4.0
2021-11-09T08:25:05.200Z
Did you add country fixed effects.
tdm
CC BY-SA 4.0
2021-11-09T21:04:30.190Z
In reality no, I run a simple GLS regression. But thank you!
Giord
<econometrics>
Panel estimation coefficient
Giord
# Panel estimation coefficient

(Asked by: username_0 on 2021-11-06)

I'm running both a panel analysis (the first I ever run, to be fair) and a time series analysis over a period of 50 years for twelve countries. In my estimation, one variable has a positive coefficient speaking at a time series level but has a negative coefficient. That variable I'm speaking about is the net return on net capital stock, which I used to explain the long term interest rates. So, my question is: is it normal that coefficient in panel analysis differs from the ones in the time series? And if so, what economic meaning does provide a negative correlation between long term rates and return on capital? Shouldn't be the opposite (i.e.: the higher the capital productivity, the higher the long term rates)? Thanks in advance.

**Tags:** econometrics
> **Comments:**
> **username_1**: Did you add country fixed effects.  
> **username_0**: In reality no, I run a simple GLS regression. But thank you!  

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## 0 answers

