Table 3.

Diagnosis tests

Part A: Tests for selecting an appropriate estimator
TestsBreusch and pagan test for random effectsF-test for fixed effectsHausman test for random effects versus fixed effects
EPU SCMP median723.25***7.41***49.64***
EPU SCMP mean673.49***7.05***48.61***
EPU mainland median732.82***7.49***58.07***
Global EPU median699.62***7.23***55.28***
Global EPU mean679.68***7.19***60.70***
Part B: Residual tests
TestsModified wald test for heteroskedasticityPesaran test for cross-sectional dependenceWooldridge test for autocorrelation
EPU SCMP median7,965.79***56.04***193.73***
EPU SCMP mean6,548.55***75.22***196.40***
EPU mainland median6,903.25***55.51***195.89***
Global EPU median10,631.23***63.80***195.38***
Global EPU mean8,046.24***71.39***196.30***

Note(s): The table presents the test statistics; *** indicates 1% level of significance

Source(s): Authors’ own work

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