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Data Analysis Process

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unitunit26
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2 views1 page

Data Analysis Process

Uploaded by

unitunit26
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Data Analysis Process Flow

1. Data Analysis
- Descriptive Statistics

2. Pre-Diagnostics
- Winsorise and Trimmed at 1%
- Multicollinearity → Correlation Matrix
- Stationarity → CADF Test (Pesaran, 2007)
- Causality → Granger Causality Test
- Endogeneity → Durbin and Wu-Hausman

3. Selection of Appropriate Model


- POLS vs REM → Breusch-Pagan Lagrange Multiplier Test
- FEM vs REM → Hausman Test

4. Post-Diagnostics
- Auto-Correlation → Wooldridge Test
- Heteroscedasticity → Modified Wald Test
- Cross-Section Dependence → Pesaran CD Test

5. Consistent Results?
- Yes → Chosen Model is Appropriate (FEM/REM)
- No → When N > T, prefer PCSE (Hoechle, 2007)

6. Final Step
- Panel Corrected Standard Error (PCSE) Estimates (Beck & Katz, 1995)

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