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Panel data estimation between the unemployment rate and income level are given below. Which model for this panel estimation is appropriate, the Fixed Effect Model

Panel data estimation between the unemployment rate and income level are given below. Which model for this panel estimation is appropriate, the Fixed Effect Model or the Random Effect Model? Why? image text in transcribed
\begin{tabular}{|l|l|l|l|} \hline Coefficients & Fixed & Random & Difference \\ \hline Unemp & 1.21548 & 0.254864 & 0.960616 \\ \hline Inc & 2.15401 & 1.976314 & 0.177696 \\ \hline & & & \\ \hline Hausman Test & & & \\ \hline Chi2(1) & 3.67 & & \\ \hline Prob & 0.1553 & & \\ \hline \end{tabular}

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