Diagnosis tests
| Part A: Tests for selecting an appropriate estimator | |||
| Tests | Breusch and pagan test for random effects | F-test for fixed effects | Hausman test for random effects versus fixed effects |
| EPU SCMP median | 723.25*** | 7.41*** | 49.64*** |
| EPU SCMP mean | 673.49*** | 7.05*** | 48.61*** |
| EPU mainland median | 732.82*** | 7.49*** | 58.07*** |
| Global EPU median | 699.62*** | 7.23*** | 55.28*** |
| Global EPU mean | 679.68*** | 7.19*** | 60.70*** |
| Part B: Residual tests | |||
| Tests | Modified wald test for heteroskedasticity | Pesaran test for cross-sectional dependence | Wooldridge test for autocorrelation |
| EPU SCMP median | 7,965.79*** | 56.04*** | 193.73*** |
| EPU SCMP mean | 6,548.55*** | 75.22*** | 196.40*** |
| EPU mainland median | 6,903.25*** | 55.51*** | 195.89*** |
| Global EPU median | 10,631.23*** | 63.80*** | 195.38*** |
| Global EPU mean | 8,046.24*** | 71.39*** | 196.30*** |
| Tests | Breusch and pagan test for random effects | Hausman test for random effects versus fixed effects | |
| 723.25*** | 7.41*** | 49.64*** | |
| 673.49*** | 7.05*** | 48.61*** | |
| 732.82*** | 7.49*** | 58.07*** | |
| 699.62*** | 7.23*** | 55.28*** | |
| 679.68*** | 7.19*** | 60.70*** | |
| Tests | Modified wald test for heteroskedasticity | Pesaran test for cross-sectional dependence | Wooldridge test for autocorrelation |
| 7,965.79*** | 56.04*** | 193.73*** | |
| 6,548.55*** | 75.22*** | 196.40*** | |
| 6,903.25*** | 55.51*** | 195.89*** | |
| 10,631.23*** | 63.80*** | 195.38*** | |
| 8,046.24*** | 71.39*** | 196.30*** | |
Note(s): The table presents the test statistics; *** indicates 1% level of significance
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