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The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 3 Fixed-effect versus random-effect regression results (the dependent variable is the natural log of unemployment)

From: Unemployment and the European Union, 2000–2017: structural exploration of distant past economic experience and future prosperity

 

(1)

(2)

Random effectsa

Fixed effectsb

Regressors

 Inflation,  %

− 0.163 (0.033)***

− 0.260 (0.037)***

 Capital, log

− 12.196 (0.686)***

− 8.306 (0.901)***

 Labor, log

8.588 (0.830)***

17.344 (1.912)***

 Real GDP, log

4.787 (1.068)***

− 9.605 (2.153)***

 Trade,  %

0.009 (0.005)*

0.001 (0.007)

 Intercept

52.351 (8.695)***

199.996 (49.658)***

Observations

504

504

R-squared

0.518

0.830

Correlated random-effect test

78.700 [0.000]***

 

Redundant cross-section fixed-effect test

 

661.889 [0.000]***

Redundant period fixed-effect test

 

84.590 [0.000]***

  1. aRandom cross-sectional effects are estimated
  2. bTwo-way fixed effects are estimated. ***, **, and * denote significance at the 1%, 5%, and 10% levels, respectively. Values in parentheses are standard errors. Values in square brackets are probability values. All results are calculated using EViews (version 8) panel-data regressions