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A comparison of least squares dummy variable (LSDV) and the pooled estimator in fixed effect model
This paper examines a comparison of Least Squares Dummy Variable and a pooled estimator in a fixed effect model. The aims of the research are: to estimate the individuals firms parameters by using least squares dummy variables. To estimate parameter of the pooled observations using ordinary least sq...
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2008
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| LEADER | 00000njm a2000000a 4500 | ||
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| 001 | oai:repository.ui.edu.ng:123456789/7640 | ||
| 042 | |a dc | ||
| 720 | |a Olayiwola, O. M. |e author | ||
| 720 | |a Adepoju, A.A. |e author | ||
| 720 | |a Olajide, J. T |e author | ||
| 260 | |c 2008 | ||
| 520 | |a This paper examines a comparison of Least Squares Dummy Variable and a pooled estimator in a fixed effect model. The aims of the research are: to estimate the individuals firms parameters by using least squares dummy variables. To estimate parameter of the pooled observations using ordinary least squares. To estimate the behavioral relationship between individuals variables and to test for the significance différence across the groups. The framework was based on a fixed effect model. The analysis of a panel model was carried out using the Ordinary Least Squares (OLS) and Least Squares Dummy Variable (LSDV) methods. various tests were carried out to determine which of the methods to use when dealing with a panel data. The results of the analysis showed significant différence across the different groups effect. F is also significant at 95% level by using either the fixed effect or pooled model in a panel data. Also, a measure of fit of the model carried out showed that the fixed effect model significantly explained the variation in the dependent variable while pooling the model explained a very small proportion of the total variation in the dépendent variable. In the light of the above, it will be appropriate to use a fixed effect least squares dummy variable rather than pooling the data in the analysis of a panel data | ||
| 024 | 8 | |a ui_art_olayiwola_comparison_2008 | |
| 024 | 8 | |a International Journal of Pure and Applied Science, 1(3), 2008. Pp. 53 - 60 | |
| 024 | 8 | |a http://ir.library.ui.edu.ng/handle/123456789/7640 | |
| 653 | |a Panel data | ||
| 653 | |a Ordinary least squares | ||
| 653 | |a Dummy variable | ||
| 653 | |a Pooled model | ||
| 653 | |a Fixed effect model | ||
| 245 | 0 | 0 | |a A comparison of least squares dummy variable (LSDV) and the pooled estimator in fixed effect model |