00:01
Okay, so we're gonna start from pmg versus mg.
00:09
Now, a chi -square value is given by 53 .68 with a p -value close to 0.
00:19
This indicates strong evidence against the new hypothesis, which suggests that the pmg estimator is significantly different from the mg estimator.
00:29
So, pmg different from mg estimator.
00:37
And given that the holtzman test typically tests for the presence of fixed effects, this suggests that the fixed effects are present, and the pmg estimator, which allows for short -run dynamics to vary but constrains long -run coefficients to be the same across the groups, is preferred over the mg estimator which allows for both short run and long run coefficients to vary across groups so pmg preferred okay so now second thing we want to compare is pmg and dfe so a chi -squared value is equal to 18 .14 4, and the p -value is 0 .0059, which also suggests that there is a significant difference between the pmg and dfe estimators.
02:01
Now, given that dfe assumes homogeneity in both the short -run and long -run coefficients across the groups, the result we have here indicates that the assumption of homogeneity in the long run may not hold, favoring the pmg approach.
02:21
Pmg is again preferred.
02:28
So now the final thing we want to compare is mg and dfe...