Authors: | Frondel, Manuel Vance, Colin |
Title: | Fixed, random, or something in between? A variant of HAUSMAN's specification test for panel data estimators |
Language (ISO): | en |
Abstract: | This paper proposes a variant of the classical HAUSMAN specification test commonly employed to decide whether the estimation of a random-effects model is a viable alternative to estimating fixed effects. Whereas the classical test probes the equality of fixed- and random effects, the proposed variant focuses on the equality of between-groups and fixed-effects coefficients. While both test procedures lead to the same conclusions, the panel model specification underlying our testing strategy facilitates the simultaneous estimation of the fixed- and between-groups effects. As a consequence, we are able to examine both the equality of the whole range of coefficients as well as that of individual variables. The usefulness of the test is illustrated using a panel of household travel data for Germany. |
Subject Headings: | Fuel price elasticity Specification tests |
URI: | http://hdl.handle.net/2003/26638 http://dx.doi.org/10.17877/DE290R-12782 |
Issue Date: | 2010-02-02T10:40:37Z |
Appears in Collections: | Sonderforschungsbereich (SFB) 823 |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
DP_0210_SFB823_frondel_vance.pdf | DNB | 191.25 kB | Adobe PDF | View/Open |
This item is protected by original copyright |
This item is protected by original copyright
rightsstatements.org