Hausman test

[christina.sakali]

Dear administrator,

I am running a panel data regression with 154 observations.

My question concerns the choice of fixed VS random effects model. After running the redundant fixed effects testing on EViews, both tests (F, LM (X2)) strongly reject the Ho that there are no individual effects in my data. However when I run the Hausman test in order to test which model is more appropriate for my data (fixed VS random effects) I get the following message: * Cross-section test variance is invalid. Hausman statistic set to zero.

I looked in other posts about the same topic and I've read the answers, however I still don't understand. Does this mean that I should use the fixed effects model or that there are no individual effects in my data? I am aware that the second option is inconsistent with the F and LM tests I mention earlier in this post.

What is your suggestion? Any guidance/help is appreciated.

Thank you in advance,

Christina