The positive definite error is concerning. I would suggest using
xtoverid as an alternative test.
Schaffer, M.E., Stillman, S. 2006. xtoverid: Stata module to
calculate tests of overidentifying restrictions after xtreg, xtivreg,
xtivreg2 and xthtaylor http://ideas.repec.org/c/boc/bocode/s456779.html
On Thu, Aug 13, 2009 at 8:38 AM, Marco Buur<[email protected]> wrote:
> I run hausman test and got Prob>chi2 = 0.1668
> According my undestanding this is confmation that I should use random
> effect model. Am i right ?
>
> Thanks a lot
>
> xtreg A B C , fe robust
> est store fixed
> xtreg A B C , re robust
> hausman fixed
>
>
> Test: Ho: difference in coefficients not systematic
>
> chi2(8) = (b-B)'[(V_b-V_B)^(-1)](b-B)
> = 11.67
> Prob>chi2 = 0.1668
> (V_b-V_B is not positive definite)
>
>
>
>
> xtreg Public_cap_ln Prevalence_ln GNI_cap_ln reg4 reg8 Year_* if
> Tag!=1 , fe robust
>
> est store fixed
>
> xtreg Public_cap_ln Prevalence_ln GNI_cap_ln reg4 reg8 Year_* if
> Tag!=1 , re robust
>
> hausman fixed
> *
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>
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