Dear Political Methodologists,

I'm studying determinants of gross school enrolment. The data is
unbalanced panel data consisting of 6 countries and about 25 years of
each. My choice of model is error correction model since school
enrolment is not stationary. I used OLS with PCSEs. My estimation for
primary and secondary school enrolment look fine. However, in the model
for tertiary school enrolment, the coefficient for the lagged d.v. comes
out as insigificant and positive.  I then logged tertiary school
enrolment since it is skewed; the coefficient for the lagged d.v. now
becomes negative now but still insignificant. Does the insignificance of
the d.v. mean error correction model is not approriate?  If yes, can I
still interpretate other coefficients the regular way?  Any advice is
greatly appreciated.

Best,

Jing Chen
PhD Candidate
Political Science Department
Rutgers, the State University of New Jersey

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