I have a large dataset of regional tourism rates for each year for the period 1990-2010. At the year 2000, an economic disaster had occurred, and I would like to determine whether there it had a statistically significant effect on the regional tourism rates.
I have considered running the following Fixed-Effects Regression Model: RegionalTourismRate = EconomicCrisis + Factor(Region)
I coded the Economic Crisis as a binary variable, where 0 is before the crisis and 1 is after the crisis. I coded the Regions as dummy variables.
Would this be an appropriate method to determine the effect of the crisis on regional tourism rates?
Code used for the Hausman Test:
phtest(dat$TourismRate ~ dat$Crisis,data = dat, model = c("within", "random"), index = c("Region","Year"), vcov = TRUE)