Fixed vs. Random Effects Models. Hausman test.

[ryan_DETROIT]

hi all,
i am trying to select which models i should use to conduct panel data analysis. random vs. fixed effects.
In order to make a choice between random effects model and fixed effects model i should perform Hausman test. Yet i do not know how to perform Hausman test. does anybody help me ? I can not find the hausman test button on EViews program.
many thanks.

[EViews Gareth]

Estimate an equation with random effects, then click on View->Fixed/Random Effects Testing->Hausman Test.

It is fairly well documented in the manual/help system.

[ryan_DETROIT]

thanks for the reply. i am using EViews 5.1 version.
there is no button view> Fixed/Random Effects Testing->Hausman Test.
how i can estimate an equation with random effects ? Do you mean write an equation on the command bar ?

[EViews Gareth]

Perhaps you would be best off reading the panel estimation chapter of the help/manual, I think it explains it all pretty well.

[ryan_DETROIT]

i have read EViews 5.1 guide. yet it did not help me to solve my problem. I just wanna know how to run hausman test in order to select method. does anybody help me please ? by the way yearly five independent data and one dependent data between 1993 and 2008 is sufficient for panel data analysis?
many thanks...

[EViews Gareth]

hausman2.png (296.64 KiB) Viewed 27637 times

hausman.png (112.94 KiB) Viewed 27636 times

[ryan_DETROIT]

that buttons do not appear in EViews 5.1 which i use. i want to have result spreadsheet below.

Hausman test

(fixed versus random effects)
Chi-square (2 d.f.) 8.2380468
p-value 0.0162604

[ryan_DETROIT]

hi there, i just want to run Hausman test in order to select method ( Random effects or fixed effects). \
in Stata ,researchers are able to run Hausman test by comparing coefficients of Fixed or Random effects. is it not available in EViews 5.1 ?
thank you...

[EViews Glenn]

We are still puzzled as to why this isn't working for you since it is certainly a part of EViews 5.1.

Let me make certain that you...

1. Have a panel structured workfile or a pool object in a non-panel workfile.
2. Have estimated your equation or pool using random effects.
3. Are looking on the View menu of the estimated equation or pool.

Note that this feature was not available in EViews 5 so that EViews 5.1 is required.

If you believe that the answer to all of these questions is yes, you probably should send us your workfile, along with the build date of your copy of EViews. You can find the latter by selecting Help/About EViews from the main menu.

[ryan_DETROIT]

ok, i agree with you, i should probably send my workfile in Excel format. maybe now you can help me...many thanks...

[EViews Glenn]

You should send the *EViews workfile* along with your serial number to tech support (support@eviews.com) and we'll be happy to take a look.

[ryan_DETROIT]

sorry for the late answer. I am using EViews 5.1. But i can not find a button that enables me to run Hausman test. I need to run Hausman test in order to make choice between random effects model or fixed effects model. BTW pic. was too large. then i zipped that .

[EViews Glenn]

Please send the *EViews workfile* along with your serial number to tech support (support@eviews.com) and we'll be happy to take a look. You may zip the workfile if you like. Please don't it send in RAR format.