Dear Members,

I would like to know how do deal with cross sectional dependences.
I have started doing something after some readings as follow:

After running fixed effect model I run "xtcsd, pesaran" for cross sectional dependence. My data indicates that there is a sectional dependence.

I have unbalanced panel dataset where N>T (N=56 and T=16).

xtpcse is suitable ?
If yes I would like to know if it obligatory to add an option? (I found an example like this : eg: xtpcse variables, c(psar1) )

And then, if it is obligatory, how to know which option I must apply ?


Thanks in advance