Table A3 Post-estimation model... | Emerald Publishing

Table A3

Post-estimation model validation tests

No	Null hypothesis	Test procedure	Distribution	T-stat	p-value	Results
1	$H_{0}$ ⁠: u_i = 0, Common effects (pool)	Panel regression	$F_t e s t (k - 1, n - 1)$	52.07	0.0000***	Reject H₀
2	H₀: Random effects model	Hausman (1978)	$χ^{2} (k)$	54.79	0.0000***	Reject H₀
3	H₀: Period effects are jointly zero	Testparm	$F_t e s t (k - 1, n - 1)$	732.34	0.0000***	Reject H₀
4	H₀: No cross-sectional dependence	xttest2, Breusch and Pagan (1979)	$χ^{2} (k)$	322.27	0.0000***	Reject H₀
5	H₀: No cross-sectional dependence	xcsd, Pesaran (2004)		11.84	0.0000***	Reject H₀
6	H₀: Homoscedasticity	xttest3, Greene (2000)	$χ^{2} (k)$	48.12	0.0000***	Reject H₀
7	H₀: No serial correlation up to order p	Born and Breitung (2016)	$χ^{2} (p)$	131.75	0.0000***	Reject H₀
8	H₀: residuals are normal	Shapiro and Wilk (1965)	$W_t e s t$	0.9974	0.0508**	Fail to reject H₀ at 1%
9	H₀: residuals are normal	Shapiro and Francia (1972)	$W^{'}_t e s t$	0.9973	0.0822*	Fail to reject H₀ at 5%

No	Null hypothesis	Test procedure	Distribution	T-stat	p-value	Results
1	$H_{0}$ : u_i = 0, Common effects (pool)	Panel regression	$F_t e s t (k - 1, n - 1)$	52.07	0.0000***	Reject H₀
2	H₀: Random effects model	Hausman (1978)	$χ^{2} (k)$	54.79	0.0000***	Reject H₀
3	H₀: Period effects are jointly zero	Testparm	$F_t e s t (k - 1, n - 1)$	732.34	0.0000***	Reject H₀
4	H₀: No cross-sectional dependence	xttest2, Breusch and Pagan (1979)	$χ^{2} (k)$	322.27	0.0000***	Reject H₀
5	H₀: No cross-sectional dependence	xcsd, Pesaran (2004)		11.84	0.0000***	Reject H₀
6	H₀: Homoscedasticity	xttest3, Greene (2000)	$χ^{2} (k)$	48.12	0.0000***	Reject H₀
7	H₀: No serial correlation up to order p	Born and Breitung (2016)	$χ^{2} (p)$	131.75	0.0000***	Reject H₀
8	H₀: residuals are normal	Shapiro and Wilk (1965)	$W_t e s t$	0.9974	0.0508**	Fail to reject H₀ at 1%
9	H₀: residuals are normal	Shapiro and Francia (1972)	$W^{'}_t e s t$	0.9973	0.0822*	Fail to reject H₀ at 5%

Note(s): *** 1%, ** 5% and *10%

Source(s): Author's computations