mundlak

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    Hausman test VS Mundlak model; choosing between fixed-effects and random-effects

    I am using panel data and I have to choose between fixed-effect and random-effect models. I run the Hausman test, the H0 (i.e., the difference in the coefficients from the two models is not systematic) is rejected. Thus, I should use the fixed-effect. I also run a second test, which is based...