hi, i have panel data of 22 cities with 17 years, and i used log transformations for my variables in xtreg , after carrying out the hausman test to decide between Random- effect or Fixed-effect model, the result was that Fixed effect model would be better. After this, I applied some tests to verify problems of heteroskedasticity, autocorrelation such as:
xttest2 (Breusch-Pagan statistic for cross-sectional independence in the residuals)
xttest3 (heteroskedasticity)
xtcsd, pesaran abs (cross sectional independence)
it turned out that my data has both autocorrelation and heteroskedasticity , how can i deal with it?
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