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

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.