Panel data, fixed effects

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daan
Posts: 7
Joined: Sun Sep 07, 2014 12:09 am

Panel data, fixed effects

Postby daan » Fri Sep 12, 2014 10:04 am

Hello,

I'm using panel data and have two dummies, dfinancial (when the firm is a financial firm) and dcrisis(wheter it is a crisis year).
When i'm trying to figure out if i should use fixed of random effects i get stuck.

I think i can't use a firm specific dummy when using fixed firm effects and i can't use period fixed effects when using time dummies.

Is it correct to say i should use random effects? The hausman test say's i should use fixed effects.

Or should is split up my data set in two sets, on financials on other and use a chow test in order to test if the coefficients are sign. different?

please help me!!

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