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

Posted: Tue Apr 24, 2018 8:22 am
by amoraj
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?

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

Posted: Tue Apr 24, 2018 5:03 pm
by EViews Glenn
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).

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

Posted: Wed Apr 25, 2018 5:32 am
by amoraj
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).

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

Posted: Fri Apr 27, 2018 9:47 am
by EViews Glenn
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.