Hi, I am trying to choose Panel model choosing from fixed, random and pool OLS. I have use Hausam test, BPLM,
- I use Hausam test: for choose random effect or fixed effect. Since the chi2(5)=693.21, P-value=0.000, we need to reject the Null. Fixed effect model is more appropriate.
- Breusch-Pagan Lagrange multiplier (LM): random effects or OLS. This result shows the p-value is 1, we failed to reject the null, and conclude simple OLS regression is appropriate.
- Wald F-test and t-test: Fixed and Pooling OLS effect. The result is from the fixed effect panel model. Since F(4,180) = 50.91, the F-Distribution Tables shows F(4, max)=1.94486. So the F value is much bigger than F critical value. Also, Prob>F is smaller than 0.05. Then the null is rejected, choose the Pooled OLS, instead of fixed effect model.
