Pooling test & SSR

he term „pooling test” in statistics and econometrics usually refers to a specific kind of test used in the analysis of panel data or time series data. It’s designed to determine whether it is appropriate to pool data from different sources, time periods, or groups for joint analysis. This is particularly relevant in regression models where you might be dealing with data that varies across time and groups (like different countries, companies, etc.).

Key Points:

  1. Purpose: The primary goal is to test whether the coefficients in a regression model are consistent across different groups or time periods. If they are, it suggests that pooling the data is appropriate.
  2. Common Tests: There are several tests for this purpose, like the Chow test for panel data, which compares the fit of a pooled model against models for individual groups.
  3. Implications: A positive result (indicating pooling is appropriate) simplifies analysis, as it allows the use of a single, combined model rather than multiple group-specific models.

SSR – Sum of Squared Residuals

SSR stands for Sum of Squared Residuals (also known as the Sum of Squared Errors of Prediction, or SSE) in statistical modeling, particularly in the context of regression analysis.


  1. Definition: It is the sum of the squares of the residuals (the differences between observed and predicted values in a dataset).
  2. Purpose: SSR is a measure of the model’s fit. A lower SSR indicates a model that closely fits the data. It’s essential in calculating other statistics like R-squared.
  3. Use in Regression Analysis: In linear regression, minimizing the SSR is the goal of the Ordinary Least Squares (OLS) method to find the best-fitting line for the data.

In summary, while a pooling test is a method to determine the appropriateness of combining different datasets for analysis, SSR is a measure used to assess the accuracy of a regression model’s predictions.

Parašykite komentarą

El. pašto adresas nebus skelbiamas. Būtini laukeliai pažymėti *