Specialized on Data processing, Data management Implementation plan, Data Collection tools - electronic and paper base, Data cleaning specifications, Data extraction, Data transformation, Data load, Analytical Datasets, and Data analysis. BJ Data Tech Solutions teaches on design and developing Electronic Data Collection Tools using CSPro, and STATA commands for data manipulation. Setting up Data Management systems using modern data technologies such as Relational Databases, C#, PHP and Android.
Friday, December 20, 2019
Panel Data Hausman test
Hello, I am working with 10years and 46 countries data. All is fine until I tried the Hausman test. I realized that the random effect model estimates all my variables with collinearity issues but fixed effect drops 4 of my dummy variables because of collinearity. The Hausman test predicts fixed effect model as the best model. My question is, should I run the analysis without the variables being dropped because of colinearity in the fix-effect model or I should analyze with them since they will be dropped so that both models can have the same number of independent variables?
Thank you
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