Hello,
My dependent variable is NPLs (Non-performing Loans) and 6 independent variables - M3 = Money Supply, ER= Exchange Rate, GDP= GDP growth rate, BUG= Govt Budget, INF =Inflastion Rate, and DEBT = Public Debt. I have chosen 8 countries and the period of 12 years.
After the Hausman test when I run the fixed effects model, I did not have any cross-sectional interdependence or autocorrelation but I have only a heteroscedasticity problem in the panel data. Now can use FGLS Test to remove heteroscedasticity by using command- xtgls NPLs M3 ER GDP BUG INF DEBT under the FGLS method? To inform you that- I have a strongly balanced dataset which is T>N.

note: I am very new to stata, (currently using stata 13.0) and doing undergrad research. I am very noobie so I run the Hausman test only. Please help me!