ranhaus |

Test for correlation between random effects and regressors using Hausman test.

Tests the hypothesis that the random effects (components) are correlated with the right-hand side variables in a panel or pool equation setting. Uses Hausman test methodology to compare the results from the estimated random effects specification and a corresponding fixed effects specification. If the estimated specification involves two-way random effects, three separate tests will be performed; one for each set of effects, and one for the joint effects.

Only valid for panel or pool regression equations estimated with random effects. Note that the test results may be suspect in cases where robust standard errors are employed.

Syntax

eq_name.ranhaus(options)

Options

p | Print output from the test. |

Examples

equation eq1.ls(cx=r) sales c adver lsales

eq1.ranhaus

estimates a specification with cross-section random effects and tests whether the random effects are correlated with the right-hand side variables ADVER and LSALES using the Hausman test methodology.

Cross-references