3 votes

In a one-way fixed effect model, why do we say that the demeaned variable has reduced variation?

I have this derivation typed up as part of a PowerPoint slide. Forgive my laziness, but I'm going to just post an image of that slide.
Michael Gmeiner's user avatar
1 vote

Can hausman test imply slope heterogeneity?

The Hausman test can be used in many settings, but you appear to be referring to the case of panel data in which you are considering either fixed effects or random effects. As a reference point, I'm ...
Michael Gmeiner's user avatar

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