Error Message in Hausman Test: Insufficient number of common coefficients to test
Moderators: EViews Gareth, EViews Moderator
Error Message in Hausman Test: Insufficient number of common coefficients to test
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 Developer
 Posts: 2600
 Joined: Wed Oct 15, 2008 9:17 am
Re: Error Message in Hausman Test: Insufficient number of common coefficients to test
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 nontime varying regressors).
Re: Error Message in Hausman Test: Insufficient number of common coefficients to test
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 nontime varying regressors).

 EViews Developer
 Posts: 2600
 Joined: Wed Oct 15, 2008 9:17 am
Re: Error Message in Hausman Test: Insufficient number of common coefficients to test
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 nontime varying.
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 nontime varying.
Who is online
Users browsing this forum: No registered users and 15 guests