I am working for my thesis with panel data where N> T (N~700, T=4 as the attached file ). I carried out random - effect, OLS, fixed- effect and then did hausman test to know which model is better for my data. As the result i chose fixed defect ( P value <0.005)
After this, I applied some tests to verify problems of heteroskedasticity, autocorrelation such as:
collin
xttest3 (heteroskedasticity)
xtserial (autocorrelation)
The result is that my models present problems of heteroskedasticity, autocorrelation but I don't know exactly the way to fix these problems in stata 14
I intended to use the option xtreg .... fe, cluster (country)
+ is this ok to fix my data?
Actually, I have seen some of article in which the instruction is that first run fe cluster and re cluster then run xtoverid to choose the better . But when I ran xtoverid command, the screen became like this " xtoverid Error - must have ivreg2/ivreg29/ivreg28 version 2.1.15 or greater installedr(601)" so I think that xtoverid did not work in stata 14
I will be very grateful for your opinion regarding what I am doing, it will be a great help.
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