Search found 2 matches

by joep
Wed Jun 19, 2013 9:20 am
Forum: Econometric Discussions
Topic: Hausman Test - Time Constant Variable?
Replies: 1
Views: 3298

Re: Hausman Test - Time Constant Variable?

In the meantime I think I figured out the answer for my first question. Eviews automatically drops the time invariant variables and estimates a new random effects model without these variables and afterwards compares the new model with the fixed effects model.
by joep
Wed Jun 19, 2013 1:09 am
Forum: Econometric Discussions
Topic: Hausman Test - Time Constant Variable?
Replies: 1
Views: 3298

Hausman Test - Time Constant Variable?

Hi, I used the Hausman Test Option in Eviews in a Random Effects Model to decide whether a Random Effects or a Fixed Effects Model is better. The test returns a p-value = 1. So the Hausman Test suggests to prefer the Random Effects Model. I was a little bit surprised to get a p-value equal to one. S...

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