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I am currently running regressions with Panel data, and was wondering which Panel Regression model is the best. I ran the PooledOLS and Fixed Effect Model using the Panel OLS (with entity effect and time effect being true).

I am trying to understand what one of the outputs of the model mean, more specifically, the F-Test for Poolability. On conducting my research I found some vague answers, nothing really concrete. So, anybody from here can help me out?

Helix123
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madhav mundra
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1 Answers1

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The Poolability F-test tests how well the indexes you have on the panel pool the data. As a rule of thumb, you should have at least 3 observations per panel group. The F-test, similar to the two other F-tests in PanelOLS tests against the null that the pooling effect is not significant.

porg
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