Hi, I have panel data containing firm observations for two years.
I have to choose Panel model among fixed (FEM), random (REM) and pool OLS.
Results confirm my hypothesis in all models (FEM, REM and OLS), but I don’t know which result I have to report in my paper.
I used Hausam test, BPLM, and Chow test.
I used Hausam test: for choose random effect or fixed effect.
Since the chi2(12) = 0.01; Prob > chibar2 = 1.0000
P-value=1.000, I cannot reject the Null.
Random effect model is more appropriate
Array I used Breusch-Pagan Lagrange multiplier (LM): for choose Random effects or OLS.
Since the chibar2(01) = 0.00; Prob > chibar2 = 1.0000
P-value is 1, we failed to reject the null, and conclude simple OLS regression is appropriate.
Array
I used Chow test: for choose Fixed or Pooling OLS effect.
The result comes from the fixed effect panel model.
Since F(1, 202) = 0.01; Prob > F = 0.9299
Prob>F is bigger than 0.05.
Since the null is not rejected, I choose the Fixed effect model.
Array he three tests don’t give a univoque solution.
How can I solve?
Tkanks
Luigi
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