Hey there,
I found my error terms to be normally distributed after running an OLS regression.
(You can check the distribution of the error terms in the png file attached).

How do I decide between a random-effects or fixed-effects model?
The Breusch Pagan test gives me message that I am violating one of its assumptions.
I assume that the Breusch Pagan test assumes non-normal distributed error terms, is that true?

My data is pooled cross-section over 26 regions, with many household observations in each region.

That is my data:
Code:
input float(lnexp_edu handling_edu0 ln_remittance ln_exp_total) double(oecd rem_freq femmigrant childsec childtert elderlyageabove62 womenabove15) float(hh_edu head_gender) byte(religion hagriland urban) float(employment foodpoverty country)
  -1.93268      .1875  7.539896  5.041759 1  6 0 0 2 0 3 2 0 1 1 1  .9138418 .10346045 6
 -3.439349   .2327361  7.385745  6.037602 0 12 0 2 0 1 3 1 0 1 1 0  .6355928 .20125365 6
 -5.225298   .1523096  6.469454 4.6046762 0  6 0 0 0 2 2 1 0 1 1 0  .3414017  .1891791 6
-4.6051702 .027922885  6.287133  4.790279 1  3 1 0 0 0 0 2 0 2 0 1 1.1116916  .4281095 6
-4.6051702  .15868984  6.287133  3.802226 1  6 0 0 0 0 1 1 0 3 0 1  .4122944   .288766 6
-2.2791886  .14560167 4.3900127  4.248833 0  3 0 1 0 0 1 1 1 1 1 0 .58518666   .624305 6
 -2.579669  .14560167 4.3900127 3.1998334 0  6 0 3 0 2 2 1 0 4 1 0 .58518666   .624305 6
-1.7409674 .027922885  7.465788  6.102809 0 12 0 0 1 0 2 3 1 2 1 1 1.1116916  .4281095 6
Before generating the log of exp_edu I transformed 0 observations by replacing them with 0.01.
In my case that is replacing a 0 dollar value by 1 dollar cent.

These are are the two regressions I run and the error message of the Breusch Pagan test.
Code:
xtset region
eststo fe: xtreg lnexp_edu ib(last).phandling_edu0##c.ln_remittance ln_exp_total ln_remittance oecd rem_freq femmigrant childsec childtert elderlyageabove62 womenabove15 i.hh_edu head_gender i.religion hagriland i.urban employment foodpoverty i.country, fe

eststo re: xtreg lnexp_edu ib(last).phandling_edu0##c.ln_remittance ln_exp_total ln_remittance oecd rem_freq femmigrant childsec childtert elderlyageabove62 womenabove15 i.hh_edu head_gender i.religion hagriland i.urban employment foodpoverty i.country, re
hausman fe re


    Test:  Ho:  difference in coefficients not systematic

                 chi2(29) = (b-B)'[(V_b-V_B)^(-1)](b-B)
                          =  -122.40    chi2<0 ==> model fitted on these
                                        data fails to meet the asymptotic
                                        assumptions of the Hausman test;
                                        see suest for a generalized test

Array
and I am using Stata 16

Any help and comments are appreciated.

Kind regards,
Alexander