Hello everyone.
I wish you could help me. I am studying the effect of gender on business failure. I have a binary dependent variable that takes two values: 1 if the company is bankrupt and 0 otherwise. I have panel data (several companies over several years) and I have applied the probit and random effect probit, but I don't know how to choose between the two models or what the most appropriate model is. Is there a test of homogeneity or heterogeneity to do before applying the probit model or random effect probit model( homogeneity test on non-linear regressions)? Also, the Breush-Pagan test, which is normally applied to linear regressions on panel data, can it be applied to nonlinear regressions ?
I look forward to your response and thank you for your time. Best regards.