Table 4 Test for individual cross-sections and time-specific effects
Tests | Model 1A | Model 1B | Model 1C | Model 1D | Decisions | ||||
|---|---|---|---|---|---|---|---|---|---|
Test statistics | Prob | Test statistics | Prob | Test statistics | Prob | Test statistics | Prob | ||
Null hypothesis (H0): zero cross section and time effects: Poolability test (F-test) | F(47,505) = 134.41 | 0.0000 | F(47,505) = 135.62 | 0.0000 | F(47,505) = 148.62 | 0.0000 | F(47,505) = 154.53 | 0.0000 | reject H0 at 1% level |
H0: Pooled OLS model is appropriate: Poolability test (F-test) | F(47,505) = 328.01 | 0.0000 | F(47,505) = 266.86 | 0.0000 | F(47,505) = 409.80 | 0.0000 | F(47,505) = 446.03 | 0.0000 | reject H0 at 1% level |