Panel data, fixed effects
Posted: 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!!
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!!