There are two models.
Data taken from only 1 country and there are 25 institutes.
total observations=425
Years= 2003-2019
Hausman's selected the Fixed Effect Model in Model 1; and Random Effect Model in Model 2) (but facing heteroscedasticity issue)
There are three methods to remove the hetero issue in unbalanced panel:
Many Thanks!
- Robust Standard Error (but giving insignificant results)
- Transformation (Taking log) (i have taken the log but not giving more significant results 3/8)
- The last one is Weighted Least Square Method (GLS/FGLS) (giving good results) (so can we use this method for both fixed and random effect models??)
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