Error Message in Hausman Test: Insufficient number of common coefficients to test

For technical questions regarding estimation of single equations, systems, VARs, Factor analysis and State Space Models in EViews. General econometric questions and advice should go in the Econometric Discussions forum.

Moderators: EViews Gareth, EViews Moderator

amoraj
Posts: 2
Joined: Mon Feb 19, 2018 10:22 pm

Error Message in Hausman Test: Insufficient number of common coefficients to test

Postby amoraj » Tue Apr 24, 2018 8:22 am

I did a Balanced Panel Regression Analysis using Random Effects (15 companies, six years per company). The Hausman test cannot be computed because an error message occurs. The error message states "Insufficient number of common coefficients to test". What is this error all about and what is the solution?

EViews Glenn
EViews Developer
Posts: 2590
Joined: Wed Oct 15, 2008 9:17 am

Re: Error Message in Hausman Test: Insufficient number of common coefficients to test

Postby EViews Glenn » Tue Apr 24, 2018 5:03 pm

Sounds as though you don't have enough data. In particular, the error probably suggests that estimating the fixed effects model requires dropping regressors to account for singularities (i.e., there are non-time varying regressors).

amoraj
Posts: 2
Joined: Mon Feb 19, 2018 10:22 pm

Re: Error Message in Hausman Test: Insufficient number of common coefficients to test

Postby amoraj » Wed Apr 25, 2018 5:32 am

Don't have enough data? How is that possible considering my model has only one IV?

EViews Glenn wrote:Sounds as though you don't have enough data. In particular, the error probably suggests that estimating the fixed effects model requires dropping regressors to account for singularities (i.e., there are non-time varying regressors).

EViews Glenn
EViews Developer
Posts: 2590
Joined: Wed Oct 15, 2008 9:17 am

Re: Error Message in Hausman Test: Insufficient number of common coefficients to test

Postby EViews Glenn » Fri Apr 27, 2018 9:47 am

I can't say without seeing the data. You are welcome to post the data here.

All that I know is that we check the effective number of observations in the fixed effects estimator. Again, my guess is that you have variables that are non-time varying.


Return to “Estimation”

Who is online

Users browsing this forum: lpando08 and 3 guests