Haussmann Test

[Muhanad]

Hello,

I have tried the Haussmann test on my eviews data file but have recieved the error in the test results stating "Cross section test variance invalid. Haussmann statistic is set to zero." The attached file includes the data and test result in question. Any comments or advice will be much appreciated.

- muhanad

[EViews Gareth]

http://forums.eviews.com/search.php?key ... mit=Search

[Muhanad]

Thank you!

[Muhanad]

As a follow up; given the above test results, will a constant coeffiencent (pool) model suffice? That is, instead of selecting random or fixed in the drop-down option.

[EViews Glenn]

That is not an implication of the result. The only thing you can take from it is that there is insufficient evidence to distinguish between the fixed and random effects models.