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Panel Data: Cross Section Effect Specification

Posted: Thu Jun 25, 2015 8:23 pm
by 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

Re: Panel Data: Cross Section Effect Specification

Posted: Tue Nov 17, 2015 8:04 am
by 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.