Hello everybody,
I did the Hausman test and found that fixed effects are more appropriate. At the same time, my other test showed that heteroskedasticity and no autocorrelation occur. So I adjusted my model to include robust standard errors -vce(robust).
Now I am not sure if I have to do the Sargan Hansen test or the Hausman test is enough?
I run the Sargan Hansen test (with re-specification) and the result is P-value=0.000. Am I right that it confirms the use of the fixed effects model?
Could anyone clarify this for me?
Thanks in advance and best regards
Jana
I did the Hausman test and found that fixed effects are more appropriate. At the same time, my other test showed that heteroskedasticity and no autocorrelation occur. So I adjusted my model to include robust standard errors -vce(robust).
Now I am not sure if I have to do the Sargan Hansen test or the Hausman test is enough?
I run the Sargan Hansen test (with re-specification) and the result is P-value=0.000. Am I right that it confirms the use of the fixed effects model?
Could anyone clarify this for me?
Thanks in advance and best regards
Jana
