Hausman Test
Posted: Fri Jan 16, 2015 1:46 pm
Hausman test is used for testing either fixed effect model is appropriate or random effect model if it is significant than mean we should go for fixed effect
in eview we have two option one is to use fixed effect or random for cross section and 2nd is to use fixed effect or random effect for time
now my question is hausman test only tell us either we use fixed effect or random effect in cross section but how would we know either we use fixed effect on time or not
in eview we have two option one is to use fixed effect or random for cross section and 2nd is to use fixed effect or random effect for time
now my question is hausman test only tell us either we use fixed effect or random effect in cross section but how would we know either we use fixed effect on time or not