Write about description of methods - random effect model

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Reference no: EM132373863 , Length: word count:1400

Assignment - Statistics Research Methodology

Write 1000-1500 words for description of methods used such as OLS, random effect model, Generalised movement method, Sargan J test and Housman Variables and why they were used in analysis.

The analysis part is already done. In topic, to see the impact of Economic Variables on Cash holdings so used company data from 2009 to 2018. Need the write up of the research methods used as mentioned above.

Require references to be provided from quality journals and Harvard referencing style needs to be used.

Below contains some of the information on my method.

The generalized moment method is employed, and deficiencies of explicative factors are used as tools. The model is appropriate for the endogenous catering issue in the information. Not all regression variables are associated with an error term in GMM estimates. Lag values of the variables can be used as instruments. Different methods such as OLS, random effect models, etc. for the evaluation of panel data are used in the current study.

The random effect model supports the Hausman test. The generalized GMM method is used as an assessment technique for the treatment of the endogeneity issue. Explanatory lags are used as tools and the Sargan J test promotes the instruments ' validity. The Sargan J test is based on the premise that the model parameters are previously recognized via coefficient constraints and the validity of over-identification constraints is tested.

For separate companies, information is gathered over distinct periods of time, it is known as panel data or longitudinal data. This is because it consists of both a time-series dimension and a cross-sectional dimension

Instructions: Need 1400 words.

Attachment:- Assignment File.rar

Reference no: EM132373863

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