Hausman Test Lite

Problem

Return the Hausman-style statistic (b_fe - b_re)^2 / (se_fe^2 - se_re^2) comparing fixed and random effects estimates. Return 0.0 when the variance difference is not positive.

Hint

Large values suggest the random effects estimator is inconsistent.

Test cases

case 1

in: [1.2,1,0.3,0.2]

expected: 0.7999999999999998

case 2

in: [1,1,0.5,0.5]

expected: 0

case 3

in: [0.5,0.3,0.2,0.1]

expected: 1.3333333333333333

case 4

in: [1,2,0.2,0.1]

expected: 33.33333333333333

case 5

in: [0,0,0.1,0.05]

expected: 0

Starter codePython

def hausman_lite(b_fe, b_re, se_fe, se_re):
    # Your code here
    pass

5 test cases · run your code against them in the editor