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?
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.
What is F-Test for Poolability in the Fixed Effect Model?