Dear there,,,
I have two questions, appreciate help.
First Question:
Since Regression with Driscoll-Kraay standard errors works only for both pooled and fixed-effects models.
What I shall do to correct the cross-sectional dependence problem in Random-Effects Model, when Hausman test show that random is preferred than fixed.
Second one:
Since the cross-sectional dependence is the correlation of two independent signals with the time shift.
What is the implication of the significant test for the simple regression i.e, with a sole Predictor variable. [Pesaran's test of cross sectional independence = 7.037, Pr = 0.0000]
Thanks in advance
I have two questions, appreciate help.
First Question:
Since Regression with Driscoll-Kraay standard errors works only for both pooled and fixed-effects models.
What I shall do to correct the cross-sectional dependence problem in Random-Effects Model, when Hausman test show that random is preferred than fixed.
Second one:
Since the cross-sectional dependence is the correlation of two independent signals with the time shift.
What is the implication of the significant test for the simple regression i.e, with a sole Predictor variable. [Pesaran's test of cross sectional independence = 7.037, Pr = 0.0000]
Thanks in advance
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