Skip to main content

Table 3 Tests used to identify the model

From: Sugarcane expansion and farmland prices in São Paulo State, Brazil

Test

Null hypothesis

Alternative hypothesis

Test value

Conclusion

P1

P2

Breusch–Pagan LM

Pooled OLS

Random effects

498.35

p = 0.000

391.61

p = 0.000

OLS is rejected in favor of random effects

Hausman

Random effects

Fixed effects

86.29

p = 0.000

108.48

p = 0.000

Random effects is rejected in favor of fixed effects

F test for detection of fixed effects

All fixed effects are equal to zero

At least one fixed effect is different from zero

68.35

p = 0.000

59.99

p = 0.000

Lack of fixed effects is rejected

Greene for heteroskedasticity

Same variance for each individual

The variances of individuals are not equal

413.41

p = 0.000

180.27

p = 0.000

Homoskedasticity is rejected in favor of heteroskedasticity among individuals

Wooldridge for autocorrelation

No first-order autocorrelations

First-order autocorrelations

50.386

p = 0.000

79.732

p = 0.000

Lack of first-order autocorrelations is rejected