I have a panel of 49 observations, 7 countries, 7 years, running Panel fixed effects and IV fixed effects on Stata.
I have used the modified Wald test to test for the presence of heteroskedasticity p values are low and hence the data does suffer from heteroskedasticity.
Should I check for robust standard errors for both these model specifications or just for IV fixed effects.
So my command on on stata would be: xtivreg2 y1 x1 x2 x3 (endogenous variable=instrument) t1 t2 t3 t4 t5 t6, fe robust endog (endogenous variable)
Also, if my endogeneity test chi-sq value is 0.1366, does that mean there's no reverse causality in my regression? So I don't have to run IV? (I do wish to run IV as they meet my expectations)