Hi everyone, I am conducting the Wooldridge test for serial autocorrelation for my mediation analysis. My data is unbalanced panel data.
I wanted to know if I should include the mediator and control variables to the xtserial command or not? Basically I have added lagged Dependent Variable (DV) as a control which is why I wanted to check for autocorrelation. But I am not sure if I need to include all control variables as well as the mediator variable in the test. Right now I am using the following equation:
1. xtserial DV IV MV CV1 CV2 CV3 CV4
Where DV= Dependent Variable, IV= Independent Variable, MV= Mediator Variable, CV1-CV4= Control Variables
Should I use this set up or should I just keep the following set up with just one control variable which is the lagged DV:
2. xtserial DV IV MV CV1(Lagged DV)
Thank you in advance!
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