4.Type, Source and Collection Method of Data
4.1.Data Panel Election
a. Chow-Test
Chow test is a test to determine the Ordinary Least Square Model or Fixed Effects Model most appropriately
used in estimating panel data. The hypothesis of the Chow test is :
H0 : Ordinary Least Square
H1 : Fixed Effect Model
Basic rejection of the hypothesis above is the calculation of the F-statistic comparing the F-table.
Comparison of the results calculated F is used when larger (>) than the F table then H0 is rejected, which means
the most appropriate model to use is the Fixed Effects Model. Vice versa, if the calculated F is smaller (