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In this video, I am going to show how to select the best model out of the three regression models Pooled Regression Model Fixed effect Model Random effect model and Hausman Test.
The variable we used in this video is Money Demand (M3) Consumer Price Index (CPI) (Not FDI (sorry about the Tipo mistake)and Interest Rate (Rate).
To choose between POLS and the Fixed Effect model I apply Fixed/Random effect Testing with a Redundant fixed effects-likelihood ratio.
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Негізгі бет (EViews10) Panel Data Analysis Pooled OLS (POLS), Fixed effect (FEM), and Random Effect (REM) Models
Пікірлер: 47