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st: issues with xtoverid

From   "Abdalla, Ahmed" <>
To   "" <>
Subject   st: issues with xtoverid
Date   Mon, 3 Feb 2014 13:17:25 +0000

I run a robust Hausman test to see which panel data model is more appropriate for my data:
xtreg ceb wtr, re cluster(firmid)

I get the error message:
Error - saved RE estimates are degenerate (sigma_u=0) and equivalent to pooled OLS

However, when I run Hausman such as:
xtreg ceb wtr, fe
estimates store fixed

xtreg ceb wtr, re
estimates store random

hausman fixed random,sigmamore   

//since I get Prob>chi2 =0.0000 (i.e.significant p values , <0.05), I use the fixed effect model.

I don't get any error message !

What is wrong with the robust version ?


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