In hausman test p value came 0 means fixed effect model is appropriate but in xttest0 p value came 1 means pooled is appropriate. So which on is appropriate for this analysis??? Please can you explain
Most of the time we follow the same procedure. However sometimes if you believe that there are different constants for ech group you should start with Huasman
Hello Sir, my hausman test has a p value of 0.6. however, there is an indication that : "Note: the rank of the differenced variance matrix (11) does not equal the number of coefficients being tested (12); be sure this is what you expect, or there may be problems computing the test. Examine the output of your estimators for anything unexpected and possibly consider scaling your variables so that the coefficients are on a similar scale." i've actually set myself up to use fixed effects. i'm analyzing 20 countries over a period from 1995 to 2020. i'm investigating the influence of 14 independent variables on the gini coefficient. thanks for your videos
Hello Sir, Is there any way to limit dummy variables coffient in output if I am using fixed effects regression manually, "regress y x i.firm". I am getting error of r(915), exceeding matrix row limit. I want to run manual fixed effects to capture effects of time invariant variables but it exceeds the limit .
Why don't u use xtreg with f option it would do the same task. This error may be because u have lots of firms in ur data and this i.firm will generate dummies for each firm. Whether u use i.firm or xtreg,fe the results would be same.
Xtreg y x i.industry,fe note this might drop industry dummies because they r time invarient and we discussed that time invarient variables cannot be included in fixed effect. U can either do cluster industry. Or u can look into reghdfe command (i am not much aware of it).
The following link contains the files used in this video:
payhip.com/b/iR9Tn
In hausman test p value came 0 means fixed effect model is appropriate but in xttest0 p value came 1 means pooled is appropriate. So which on is appropriate for this analysis??? Please can you explain
Most of the time we follow the same procedure. However sometimes if you believe that there are different constants for ech group you should start with Huasman
Hello Sir,
my hausman test has a p value of 0.6. however, there is an indication that : "Note: the rank of the differenced variance matrix (11) does not equal the number of
coefficients being tested (12); be sure this is what you expect, or there may be
problems computing the test. Examine the output of your estimators for anything
unexpected and possibly consider scaling your variables so that the coefficients
are on a similar scale."
i've actually set myself up to use fixed effects. i'm analyzing 20 countries over a period from 1995 to 2020. i'm investigating the influence of 14 independent variables on the gini coefficient.
thanks for your videos
I haven't seen this error before. If u can email me (info@thedatahall.com) the data and code u used, i will check it.
I received the same error :(. Did you manage to solve it?
Hello Sir,
Is there any way to limit dummy variables coffient in output if I am using fixed effects regression manually, "regress y x i.firm". I am getting error of r(915), exceeding matrix row limit. I want to run manual fixed effects to capture effects of time invariant variables but it exceeds the limit .
Why don't u use xtreg with f option it would do the same task. This error may be because u have lots of firms in ur data and this i.firm will generate dummies for each firm. Whether u use i.firm or xtreg,fe the results would be same.
@@thedatahall yes sir I understand that but I want to use i.industry also, which is not possible with xtreg fe.
Xtreg y x i.industry,fe note this might drop industry dummies because they r time invarient and we discussed that time invarient variables cannot be included in fixed effect. U can either do cluster industry. Or u can look into reghdfe command (i am not much aware of it).