It's difficult to guess what the pb is without the data. Try to estimate a 'simple' model, ie without the dummies (something like : dsnfi3LP=plm(lnLP~lnC+lnL+lnM +lnE,data=newdata,effect="twoways",model="within") Try also pdim(newdata) to check if you don't have 1 observation for some individuals.