International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 4 - Issue 1, January 2015 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Comparative Analysis Of Least Square Regression And Fixed Effect Panel Data Regression Using Road Traffic Accident In Nigeria

[Full Text]



J.A. Kupolusi, R.A Adeleke, O. Akinyemi, B. Oguntuase



KEY WORDS: FRSC, Heteroscedasticity Variance-Covariance, Outliers, Ordinary Least Square Regression, Road Traffic Accident, R2, t-test, Fixed Effect and Random Effect



ABSTRACT: In this research work, attempt was made to critically analyze the effect of Federal Road Safety Corps (FRSC) to various categories of road traffic accident in Nigeria for a certain period of time over all the states of federation including Federal capital territory. This was done by using panel data regression model. The conventional OLS estimator applied to panel data has over time led to inconsistent estimate of the regression parameters due to lack of adequately handling individual specific effect of the parameters. A better and preferable estimation method was exploited in this analysis to obtain a more reliable result that can be used for prediction of likely future occurrence. Among all the estimation methods considered, only the fixed effect panel data regression method with heteroscedasticity variance-covariance tools gives a consistent estimate of the regression parameters.



[1] Amemiya T (1971). The Estimation of the Variances in a Variance- Components Model."InternationalEconomic Review, 12, 1{13}

[2] Anderson TW, Hsiao C (1981).Estimation of Dynamic Models with Error Components."Journal of the American Statistical Association, 76, 598{606}

[3] Ahn, S.G., Y.H. Lee and P. Schmidt (2001): “GMM Estimation of Linear Panel DataModels with Time-varying Individual Effects,” Journal of Econometrics, 102, 219-255.

[4] Arellano M (1987). Computing Robust Standard Errors for Within Group Estimators."Oxford Bulletin ofEconomics and Statistics, 49, 431{434}

[5] Arrelano, M.(2003). Panel Data Econometrics, Oxford: Oxford University Press.

[6] Baltagi BH (2001). Econometric Analysis of Panel Data (3rd edition) John Wiley & Sons, Hoboken, NJ

[7] Bertrand, Marianne; Duflo, Esther and Mullainathan, Sendhil. "How Much Should We TrustDifferences-in-Differences Estimates?" Quarterly Journal of Economics, 2004, 119(1), pp. 249-75.

[8] Brillinger, D. (1981). Time Series Data Analysis and Theory .San Francisco: Holden-Day.

[9] Chamberlain, G. (1980): “Analysis of Covariance with Qualitative Data,” Review ofEconomic Studies, 47, 225-238.

[10] Damodar N. Gujarati (2007). Basic Econometrics 4th Edition Greene. Model for Panel data 2008

[11] Greene, W.H. 2002. Econometric Analysis, 5th ed. Upper Saddle River, NJ: Prentice-Hall.

[12] Hansen, C. (2007). “Asymptotic Properties of a Robust Variance Matrix Estimator for Panel Data with T is Large,” manuscript, Graduate School of Business, University of Chicago; forthcoming, Journal of Econometrics

[13] Kezdi, G., 2002. Robust standard error estimation in fixed-effects panel models. Mimeo

[14] Kezdi, Gabor, 2004, “Robust Standard Error Estimation in Fixed-Effects Panel Models”,forthcoming. Hungarian Statistical Review.

[15] Kiefer, N.M. (1980): “A Time Series-Cross Section Model Fixed Effects with anIntertemporal Factor Structure,” Unpublished manuscript, Department of Economics, Cornell University

[16] Laird NM, Ware JH (1982).Random-Effects Models for Longitudinal Data." Biometrics,38, 963 {974}

[17] MacKinnon JG, White H (1985). Some Heteroscedasticity-Consistent Covariance MatrixEstimators with Improved Finite Sample Properties "Journal of Econometrics, 29,305{325}

[18] Mohan D. An analysis of road traffic fatalities in Delhi India. Accid Anal Prev1985,17:33-45

[19] Mundlak Y (1978). On the Pooling of Time Series and Cross Section Data " Econometrica,46(1), 69{85}

[20] MunnellAH (1990). Why Has Productivity Growth Declined? Productivity and PublicInvestment." New England Economic Review, pp 3{22}

[21] NantulyaV.M and M.R Reich, 2002. The neglected epidermic; Road traffic injuries in developing countries BMJ; 324: 1139-1141

[22] Nerlove M (1971). Further Evidence on the Estimation of Dynamic Economic Relations from a Time-Series of Cross-Sections." Econometrica, 39, 359{382}

[23] Nickell, S. (1981): “Biases in Dynamic Models with Fixed Effects,” Econometrica, 49,1417-1426.

[24] O’Neill, B and D Mohan, 2002, reducing motor vehicle crash dealth and injuries in newly motorizing countries, BMJ; 324:1142-1145

[25] Oskam,J.J: kingma and H.J. Klasen, 1994, The Groningen trauma study. Injury Pattern in a Dutch trauma centre. Eur. J. Emergency Med, 1:167-172

[26] Pesaran MH (2004). General Diagnostic Tests for Cross Section Dependence in Panels Technical Report1229, CESifo Working Paper Series.

[27] Pinheiro J, Bates D, DebRoy S, Sarkar D (2007). nlme: Linear and Nonlinear Mixed EffectsModels. R package version 3.1-86,

[28] Pinheiro JC, Bates D (2000). Mixed-Effects Models in S and S-PLUS. Springer-Verlag, NewYork.R Development Core Team (2008). R: A Language and Environment for Statistical Computing.R Foundation for Statistical Computing,

[29] Soderlund N, Zwi AB. Traffic related mortality in industrialized and less developed countries.Bull World Health Organ 1995;73:175-82

[30] Sobel,M.E. (2000), “Causal Inference in the Social Sciences,” Journal of the American Statistical Association, 95,647–651

[31] Stock J, Watson M (2006). Heteroscedasticity-Robust Standard Errors for Fixed EffectsPanel Data Regression." Technical Report 0323, NBER Working Paper Series.

[32] WHO, 2004 world Report on Road Traffic injury prevention: Summary. World health organization, Geneva, Switzerland.

[33] White H (1984).A Heterosedasticity-Consistent Covariance Matrix and a Direct Test forHeteroscedasticity. Econometrica, 48, 817{838}

[34] Windmeijer F (2005). A Finite Sample Correction for the Variance of Linear Efficient Two-Steps GMM Estimators. Journal of Econometrics, 126, 25{51}

[35] Wooldridge JM (2002). Econometric Analysis of Cross-Section and Panel Data.