# NOT RUN {
#### Example 6-3
## ------------------------------------------------------------------------
data("TradeEU", package = "pder")
library("plm")
## ------------------------------------------------------------------------
ols <- plm(trade ~ gdp + dist + rer + rlf + sim + cee + emu + bor + lan, TradeEU,
model = "pooling", index = c("pair", "year"))
fe <- update(ols, model = "within")
fe
## ------------------------------------------------------------------------
re <- update(fe, model = "random")
re
## ------------------------------------------------------------------------
phtest(re, fe)
## ----results='hide'------------------------------------------------------
ht1 <- plm(trade ~ gdp + dist + rer + rlf + sim + cee + emu + bor + lan |
rer + dist + bor | gdp + rlf + sim + cee + emu + lan ,
data = TradeEU, model = "random", index = c("pair", "year"),
inst.method = "baltagi", random.method = "ht")
ht2 <- update(ht1, trade ~ gdp + dist + rer + rlf + sim + cee + emu + bor + lan |
rer + gdp + rlf + dist + bor| sim + cee + emu + lan)
## ------------------------------------------------------------------------
phtest(ht1, fe)
phtest(ht2, fe)
## ------------------------------------------------------------------------
ht2am <- update(ht2, inst.method = "am")
## ------------------------------------------------------------------------
phtest(ht2am, fe)
# }
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