Comparison of panel data and cross-sectional regression results; case of functional fixation hypothesis

Abstract

This research compares regression analysis including cross section regression and pooled regression for test of functional fixation hypothesis. The Comparison of cross section and pooled regression in case of functional fixation hypothesis is done. The comparison includes some statistical measures like beta coefficients, F test and T test and model assumptions. The results reveal that in both of univariate and multivariate regressions, the results are same statically point of view for cross section regressions and pooled regressions. Of course numbers of mentioned measures are different but it is not significant statically.

Keywords

• pooled regression
• cross section regression
• functional fixation hypothesis
• pool ability
• heteroscedasticity