Make sure that you estimated the twow models in the right order. If you did them in the wrong order, you would get a negative chi-square.
David Greenberg, Sociology Department, New York University
----- Original Message -----
From: "C.VDR KOOIJ GUEVARA" <[email protected]>
Date: Tuesday, July 3, 2007 7:03 pm
Subject: st: Artificial regression approach???
To: [email protected]
> Dear all,
> When estimating a Hausman test between fixed and random effects models
> for a sample, I got a negative chi2 value (!) together with the
> following message:
> model fitted on these data fails to meet the asymptotic assumptions of
> the Hausman test; see suest for a generalized test.
>
> I have read that the suest test does not work with panel data and that
> an option is to run the test using the artificial regression approach
> (read it in the Stata files, somebody had already asked this question
> in 2004). However, since I am a beginner with Stata and econometrics,
> I was wondering what this artificial regression approach is and how I
> can implement it to find out whether to use the fixed or random model.
>
> Thanks for the help,
>
> Carine
>
>
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