Page 1 of 1

Panel data Fixed effects

Posted: Sat Sep 13, 2014 1:51 am
by daan
Hello,

i'm using panel data and i want to know if i should use fixed effects of not.

The problem is that im also using a dummy for financial firms as well as a dummy for crisis years. When i use firm fixed effects i can't use dfinancials and when i use period fixed effects is can't use dcrisis.

When i test with the Hausman test it tells me that is should use fixed effects. I don't know what to do, should i use random effects?
Or should i use two way fixed effects?

Please help me!