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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