Hi, I applied chow test to check whether coefficients are different in two groups(in cross section data). and get following result . what will be interpretation of this result.
The Chow test tells you if the regression coefficients are different for split data sets. Basically, it tests whether one regression line or two separate regression lines best fit a split set of data.
Split Data Sets and the Chow Test
Sometimes your data will have a break point or structural point (a period of significant or violent change), splitting a data set into two parts. For example:
Donations given to an organization before and after a natural disaster.
Stock market prices before and after Black Friday.
House prices before and after a significant interest change.