[Gretl-users] F-test: Fixed Effects vs Pooled OLS

Hello! I would like to better understand the rational for using the following formula for determining the denominator degrees of freedom for the F-test: n(t-1)-(k-1); where n is the number of regions, t the number of years, k the number of parameters, including the constant. I thought that the use of the de-meaned data approach compared to LSDV approach for the fixed effects model would lead to a higher number of denominator degrees of freedom, as suggested in the Gretl Guide, with the following formula: nt-k. I would greatly appreciate if someone could shed some light on the matter. Thank you Bruno Gobeil Senior Consultant | Consultant principal DUNSKY ENERGY CONSULTING | DUNSKY EXPERTISE EN ÉNERGIE [t] 514.504.9030 *26 [f] 514.289.2665 [e] bruno.gobeil@dunsky.com<mailto:bruno.gobeil@dunsky.com> [cid:654DCECB-E50C-4670-80DE-CDA276C82480@home]<http://www.dunsky.com/> NOTICE: This message (including any attachments) is intended for the sole use of the individual or entity to which it is addressed, and contains information that is privileged, confidential and exempt from disclosure. Barring explicit indication to the contrary in the text of the message, any copying, distribution or dissemination of any part of this email (including any attachments), by the intended or accidental recipient, is strictly prohibited. If you have received this communication in error, please notify us immediately. Thank You. AVIS : Ce message (et les pièces qui y sont jointes) est destiné à l'usage exclusif de la personne ou de l'entité à laquelle il est adressé, et renferme des renseignements privilégiés et confidentiels qui ne doivent pas être divulgués. Sauf si le message invite explicitement au contraire, il est strictement interdit de copier, distribuer ou diffuser cette communication (et les pièces qui y sont jointes), en tout ou en partie, cette interdiction s'appliquant tant au récipiendaire voulu qu'involontaire. Si vous avez reçu cette communication par erreur, veuillez nous en aviser immédiatement. Merci.