1
$\begingroup$

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)

Cheers

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.