New panel data test reveals better way to estimate model coefficients!
The article introduces a new way to test if a random-effects model is better than a fixed-effects model for panel data analysis. Instead of comparing fixed and random effects, this new test looks at between-groups and fixed-effects coefficients. Both tests give the same results, but this new test lets us check all coefficients and individual variables at the same time. The researchers used household travel data from Germany to show how this test works.