Hi all,
I do my University work and need your help.
I have a panel data and want to know how 10 independent variables will affect dependent variable #1 and dependent variable #2.
4 of 10 independent variables are factor variables (distances between 2 points which are constant in time).
According to tests (1. Wald test; 2. Breusch-Pagan Test; 3. Hausman test) I want choose a Fixed Effect Model.
Could you advice me:
1. Am I right that I've chosen this type of tests to choose model type? Which tests can you advice to do additionally?
2. What is your opinion regarding using Fixed Effect Model in this case?
3. Is it ok to use 4 factor variables in a Fixed Effect Model with only 10 independent variables in total?
Thank you very much!
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