Diagnostic tests and model validation for OLS, fixed-effects and FGLS models
| Model | OLS (model 1) | Model | Fixed effects (model 2) | FLGS (model 3) |
|---|---|---|---|---|
| LM test | 480.72 | Wald χ2 | 984.28 | |
| LM test (sig.) | (0.000) | Wald (sig.) | (0.000) | |
| Durbin–Watson | 1.819 | Hausman test χ2 | 35.57 | |
| VIF | 1.51 | Hausman test (sig.) | (0.000) | |
| F-value | 192.92 | F-value | 195.11 | |
| F (sig.) | (0.000) | F (sig.) | (0.000) | |
| Root MSE | 0.01571 | |||
| Adj. R2 | 0.7624 | Adj. R2 | 0.7801 | |
| n | 300 | n | 300 | 300 |
| Model | OLS (model 1) | Model | Fixed effects (model 2) | FLGS (model 3) |
|---|---|---|---|---|
| LM test | 480.72 | Wald | 984.28 | |
| LM test (sig.) | (0.000) | Wald (sig.) | (0.000) | |
| Durbin–Watson | 1.819 | Hausman test | 35.57 | |
| VIF | 1.51 | Hausman test (sig.) | (0.000) | |
| F-value | 192.92 | F-value | 195.11 | |
| F (sig.) | (0.000) | F (sig.) | (0.000) | |
| Root MSE | 0.01571 | |||
| Adj. | 0.7624 | Adj. | 0.7801 | |
| 300 | 300 | 300 |
Source(s): Created by authors
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