Deal All,

I am working with a large panel data (27 countries and 100 years). When doing robustness checks (Pesaran's test and Breusch-Pagan LM) I found there is serial correlation and heteroscedasticity.

xtreg $ylist $xlist, fe
xtcsd, pesaran abs
xttest0

I have used the command xtscc to deal with these problems.

xtscc $ylist $xlist, fe

My questions are:
(i) Is xtscc correct for these cases?
(ii) Is there any other check that I need to do? If not, am I now in a position to report my results?


Best regards,

Mark