The Hausman test in Panel Data Analysis by using STATA

[@rockfordcorpinc7044]

Thank you for a splended and simple explanation of the Hausman test. Teachers: THIS is how people learn in the best educational way

[@HKTStata]

Wow, thank you!

[@mageswarikanawathy-qi2ju]

I am much delighted by your simple yet detailed explication of the Hausman test... Thank you!

[@HKTStata]

Glad it was helpful!

[@nebagenta7048]

Probably the most comprehensive tutorial for Hausman test Ive found. I love how you walk through every little step. Thanks!

[@IvoPetrov13]

Great video, however there is one small inconsistency. Initially (around 1:35), you point out that having a p-value above 0,05 means that you accept the null-hypothesis and select RE. At the end of the video, with the data example, you get a p-value of 0, which means you reject the null hypothesis and go with the alternative - FE. However, you say that you "accept the null hypothesis" (5:44), which is incorrect.

[@HKTStata]

You are correct! Thanks very much for your comment, it must be "... reject the null hypothesis and go with the alternative - FE".

[@TheGaGaS1985]

This comment makes understanding it more complex. I thought it is "having a p-value BELOW 0.05 means that you accept the null-hypothesis" that random effects model is better.

[@Amoralfitness0511]

Thanks ! I finally found it - the Hausman test in practice.

[@rafly2142]

Thank you for explaining the Hausman test for me! You made it easy for me to wrap my head around the information.

[@chewbakka9943]

Thank you so much for great information about the Hausman test.

[@vinciyeung2417]

Tt is a very helpful video to understand the Hausman test. You are a legend

[@KuroGane-y9x]

Very well explained the Hausman test. Thank you sir

[@dodoexotic]

I now have a clear understanding. Thank you!

[@fastabichannel3527]

I found your presentation very helpful and explained so clearly thank you :)

[@LongNguyen-pu9fh]

So well explained the Hausman test.

[@keyerteam7270]

Hi. Thank you for making it so easy. You explained in such a wonderful way.

[@ArtisticPrints-ow3vx]

Short and simple thank you very helpful

[@dka9756]

Hi, I have 4 dependent variables, when I run the hausman test for each one of them, 2 of them validate the random effect model, and the 2 others validate the fe model. Now which one to choose since I'm doing a multivariate regression? And on top of that, some of my dummy variables (useful ones) are omitted under fixed effect, but I really need to use them.

[@HKTStata]

Dummy variables are typically time-varying variables in panel data, and they are omitted in fixed-effects models. If you want to retain them, you must use between-effects model instead of FE. The selection process remains the same, only the between-effects model is not as commonly utilized. You can search and study about between-effects model. Good luck!

[@LongNguyen-pu9fh]

Excellent Stata beginner tutorial.

[@pika_3]

Wonderful! Simple and quite informative

[@JoeMeels]

Really good Stata video guide

[@HKTStata]

Glad you liked it

[@NicolasInfiel]

Very helpful information about the Hausman test

[@nhilinh7170]

Great STATA Tutorial.

[@teddymweu7030]

very simple and easy to understand.

[@HKTStata]

Glad to hear that

[@teddymweu7030]

@@HKTStata do you have other videos for other tests like multicollinearity, stationarity and autocorrelation?

[@HKTStata]

Please watch this video: kzbin.info/www/bejne/nKPLaoqDqr2Lprc; I will make videos for the other tests when I have time.

[@rajinraihananikislam5432]

At the very end, you say we come to the point where we accept the null hypothesis by indicating the fixed effects model is better. I think here you should have said, we reject the null hypothesis and indicate that fixed effect model is better for our purpose

[@HKTStata]

You're absolutely right, I made a mistake in that explanation. Thanks for your comment. The correct interpretation must be "the hausman test allows us to reject the null hypothesis and choose to use fixed effects". Random effects (RE) is preferred under the null hypothesis due to higher efficiency, while under the alternative Fixed effects (FE) is at least as consistent and thus preferred. If the p-value is small (less than 0.05), reject the null hypothesis.

[@airjetfighter4325]

Thanks. It helped me in panel data analysis.

[@gitar2330]

Super helpful! Thank you!

[@WaterJo-ks8yv]

Fantastic video. Thanks a lot!

[@alljkkjj]

If the Hausman test favors the fe model over the re model, can I still proceed with using the re model? as re robust is only giving me good results.I am taking robust options after fe and re, general fe and re model is giving very bad result. Also,robust fe and re model is not effective to test hausman. So may i use general fe and re models hausman test in robust fe and re model selection?

[@HKTStata]

+ If the Hausman test favors the fe model over the re model, can I still proceed with using the re model? No - because it means that re model is not appropriate to your data. + may i use general fe and re models hausman test in robust fe and re model selection? No, the hausman test can not run with robust option + I recommend you to add or remove variables for the best results. Good luck!

[@Cristinamorales]

Excellent. Thank you so much. Subscribed.

[@HKTStata]

Thanks and welcome

[@gaminglegobuilder]

Thank you!! You explained everything well!!

[@dombatersesat8280]

Very good sum up

[@Periodismo_Militar]

very helpful. thanx for sharing :)

[@carlosvallalive8935]

good job. Keep it up.

[@HKTStata]

Thank you, I will

[@suzana2340]

thanks.