I got a problem about panel data,
I have micro panel data with 15.689 observation in 7 years. when i run hausman test, the results is to reject the null-hypothesis.
but, when i run Breusch-Pagan LM test, the results is also reject the null-hypothesis.
I am confused, what is the best model for my data? because i have one time-invariant variable so it's impossible to use FEM.
but i read from a book, if the true model is fixed effects, the random effects estimator is inconsistent.
Thanks before
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