Solutions to Problems Posed in Volume 20(1) and 20(2): 04.1.1. A Hausman Test Based on the Difference between Fixed Effects Two-Stage Least Squares and Error Components Two-Stage Least Squares—Solution

B-Tier

Journal: Econometric Theory

Year: 2005

Volume: 21

Issue: 2

Pages: 483-484

Authors (1)

Baltagi, B.H. (Syracuse University)

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

(a) Let , where Q is the fixed effects (FE) transformation given by Q = INT − P with P = IN [otimes ] ιTιT′/T.