Panel Data: Cross Section Effect Specification

[Apple Tan]

Using Eviews 7.

1) My model
Y=X + Female
where Female is a dummy =1 if it is female

For the cross section, am I supposed to select "None"?

2) What's the difference between random and fixed effect?

Thank you

[adnma]

Run the models....

Then conduct Hausman test.

For more details see: https://www.youtube.com/watch?v=MKyR0L1-O2k


Wether u use FE or RE depends on Huasman test results.