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 |