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I am conducting research for migration from third countries outside EU to Slovakia, Czechia, Hungary and Poland.

I have $t=11$ and $N=20$. I am using Gretl.

The only good, economic meaningful results are from pooled OLS. I understand that I should not use this method in panel data (and Breusch Pagan test confirmed me that), but all other results from FE and RE are not economically meaningful and they have completely different signs from pooled OLS.

Is there some way that I can use pooled OLS, or what should I do in this case?

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  • $\begingroup$ Welcome to CV. What do you mean when you say economically meaningful? $\endgroup$ – Thomas Bilach May 16 at 2:49
  • $\begingroup$ Hi, thank you for welcoming. $\endgroup$ – Radoslav Gasper May 16 at 3:10
  • $\begingroup$ Hi, thank you for welcoming. Basically my hypothesis for diplomma is as follows: People migrate due to higher standard of living. Higher standard of living is represented with HDI index (Human development index - includes GNI, education and health). In model I always have HDIj/HDIi. i - origin country, j - final country. In pooled OLS Im getting HDI with plus - it supports my hypothesis. In RE, FE is HDI either insignificant or with minus. I am out of ideas, thats the reason why Im asking if I can use pooled OLS - all tests for pooled OLS are right. Thank you. $\endgroup$ – Radoslav Gasper May 16 at 3:18
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    $\begingroup$ So you want to ‘pool’ your data and ignore some of the panel structure because it more closely aligns with your hypothesis? $\endgroup$ – Thomas Bilach May 16 at 3:50
  • $\begingroup$ No, thats not the goal of this question. I dont want to ignore anything, thats the reason why Im asking. I want to get it right. I have "good" results in pooled OLS and opposite in RE or FE, thats why Im looking if it is possible to use pooled OLS, if no, then of course I will use RE or FE. I do not desire to "cheat". $\endgroup$ – Radoslav Gasper May 16 at 4:09

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