What is the suitable method that must I apply with my data properties?
- I have a Panel with N= 11 countries and for T= 32 years
- 7 variables and 4 models.
- All the variables stationary in I(0) and I(1)
- Cross-sectional dependence exist among variables but I don't know if I must take into account the Cross-sectional dependence for the number of N and T in my study
- When I apply the Hausman test to choose the (PMG or MG ARDL) the stata software gives the following result
Code:
chi2(3) = (b-B)'[(V_b-V_B)^(-1)](b-B) = -4.30 chi2<0 ==> model fitted on these data fails to meet the asymptotic assumptions of the Hausman test; see suest for a generalized test
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