Hello,
This is my first post so forgive me if I explain anything wrong.
I am currently running a panel data and want to know whether to use Fixed Effects regression or a Random Effects regression, in order to do so I believe the Hausman test is the best possible way of doing this. From what I understand if the value of Prob>chi2 is above 0.05 then Random Effects should be used. However I get a value of 0.9375 which seems incredibly high, is there any explanation for this or am I doing something wrong?
Here is the code:
** Fixed Effects**
xtreg gincdif1 Immigrationfromforeigncountri RegionalDebtGDP1 UnemploymentRate lnRGDP, fe
estimates store fixed
** Now we run a Random Effects**
xtreg gincdif1 Immigrationfromforeigncountri RegionalDebtGDP1 UnemploymentRate lnRGDP, re
estimates store random
hausman fixed random
Many thanks,
Pepito
Related Posts with Hausman Test
Help with esttab equations optionI am just getting my feet wet with Latex, and I am trying to use esttab to create Latex tables. When…
How to use OLS to estimate a rough ATE (Average Treatment Effect)?Hi, I am using traditional NSW(National Supported Work Demonstration) dataset to do couple of match…
generate new variables ( dividing variable by specific obs) Code: * Example generated by -dataex-. To install: ssc install dataex clear input float(date amzn …
problems with seg package for calculating segregation measuresHi, I am using seg package to calculate different education segregation measures (dissimilarity, ex…
Grouping a variable that has a calculated fieldDear list, I'm a beginner on Stata. My situation is as follows: I have 23,000+ IDs (individuals) wh…
Subscribe to:
Post Comments (Atom)
0 Response to Hausman Test
Post a Comment