Test

Purpose

Test Statistics

p-value

Results

Chow test

Pooled regression vs Fixed effect

F (79, 556) = 4.416

0.000

Fixed effect model

Breusch-Pagan

Pooled regression vs Random effect model

Chi-square (1) > 191.391

0.000

Random effect model

Hausman test

Fixed effect model vs Random effect model

Chi-square (4) > 3.390

0.495

Random effect model

White’s test

Presence of Heteroscedasticity

Chi-square (19) > 37.211

0.007

Presence of Heteroscedasticity