Search found 2 matches
- Wed Nov 15, 2017 10:01 am
- Forum: Estimation
- Topic: hausman test
- Replies: 3
- Views: 6002
Re: hausman test
In my limited knowledge of econometrics, the random effects model assumes the error term is uncorrelated with the explanatory variables. Fixed effects allows for endogeneity. The Hausman test checks this assumption. Thus it follows that the you can test the null hypothesis that there is no endogenei...
- Wed Nov 15, 2017 9:48 am
- Forum: Econometric Discussions
- Topic: No Insignificant Values in GMM Estimation
- Replies: 0
- Views: 2038
No Insignificant Values in GMM Estimation
Good evening I'm trying to run an GMM estimation on my unbalanced panel of 38 countries from 1996 to 2016. My dependent variable is NPF . The six explanatory variables ( CC GE PS RL RQ VA ) are highly correlated so I ran each one individually. Two of my control variables ( ldgdp and lgfcf ) are non-...