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 |