Hello everyone,
Just a little confused, I currently have a panel data and I am choosing between using random effects or fixed effects. When I run my regression first without an i.Year variable I find through a Hausman test that FE is more suited for this regression. However I then use testparm in order to see if I need to include a i.Year variable and the result of Prob is less than 0.05 which indicates I should. Once I include the i.year variable in my regression the value of the Hausman test changes completely and goes to 0.9457 from 0.0013 (which was the value of the Hausman test before including the i.Year variable). This new Hausman would indicate that a random effects regression might be more suited. However my questions are;
1. Why does the value of the Hausman change so much?
2. Is it more logical to do the Hausman test including the i.Year variable or without it?
Many thanks
Pepito
Related Posts with Hausman and testparm
output logisticHi to everybody. I hope that anybody can help me!! I've calculated a crude OR. and I obtained a cert…
Repeat Sales Price IndexHello. I am currently running a project where I wish to create a price index on the returns of coll…
Metanalysis (random effects model error "Convergence not achieved during tau2 estimation"*)Hello all, I am running a metanalysis using a precomputed effect size and standard error. I have no…
How to unpivot columns to create panel data?Hi all, In Excel, i'd usually use power query to unpivot columns and then copy the data into stata,…
Random-Effects Model: Sigma u equals zero, Breusch-Pagan Lagrange Multiplier equals 1(This is my first time posting something on StataList, so if my formatting or explanations are wrong…
Subscribe to:
Post Comments (Atom)
0 Response to Hausman and testparm
Post a Comment