Multiple Choice
If you perform a Hausman test on a random effects model and have a test statistic that exceeds your critical value,which of the following is not correct?
A) at least one of the regressors in the RE model is endogenous
B) none of the common coefficient estimates in the RE model will be significantly different in the FE model
C) FE may be the preferred estimation technique
D) this model may be better estimated using the Hausman-Taylor estimator
Correct Answer:
Verified
Correct Answer:
Verified
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