Hi Statalist
This is my first post, so bear with me if I make some mistakes.
I am conducting a Panel Data regression by looking at factors which may have impacted the U.S. Stock market during the first wave of COVID-19 (02.01.2020 - 12.06.2020).
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First of all, I ran a Hausman test in order to choose between Fixed and Random effect model, which gave a value of 1 indicating a Random effect model.
After the Hausman test, then was a xttest0 (Breusch-Pagan Lagrange multiplier) test in order to choose between Random Effect and OLS, which indicated a pooled OLS model.
However, I have a hard time to understand why my dataset isn't appropriate for a random effect model? My data is both changing across time and across firms (Cross section and Time-series data).
I will here below, show a short screenshot of my excel file which I am uploading to Stata.
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I hope my question make sense.
Best regards Victor
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