Hello everyone, I'm doing a stata project with the seatbelts dataset with all the 51 US States.
This is a panel data and we want to understand if we have to use OLS,areg,xtreg, fixed effect or random effect.
To make this regression useful we had to add robust.
Moreover, we tested with the Hausmann test the comparison between the fixed effect and random effect leading to fixed effect is the correct choice.
Anyway, we need to understand if we have to use areg or fixed effect.
There is any test or a way to understand wich one to use?