calculate_Z_group {RCTS}

Calculates Z = Y - X*beta_est - LF. It is used to estimate the groupfactorstructure.

Description

Calculates Z = Y - X*beta_est - LF. It is used to estimate the groupfactorstructure.

Usage

calculate_Z_group(
  Y,
  X,
  beta_est,
  g,
  lambda,
  comfactor,
  group,
  k,
  method_estimate_beta,
  initialise,
  vars_est
)

Arguments

Y

Y: NxT dataframe with the panel data of interest

X

X: NxTxp array containing the observable variables

beta_est

estimated values of beta

g

Vector with group membership for all individuals

lambda

loadings of the estimated common factors

comfactor

estimated common factors

group

indexnumber of the group

k

number of common factors to be estimated

method_estimate_beta

defines how beta is estimated. Default case is an estimated beta for each individual. Default value is "individual." Possible values are "homogeneous", "group" or "individual".

initialise

indicator of being in the initialisation phase

vars_est

number of variables that will be included in the algorithm and have their coefficient estimated. This is usually equal to the number of observable variables.

Value

NxT matrix