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  • Random effects GLS model diagnostic tests

    Hi,

    I'm new to using Stata, but I've run my model and after the Hausman and Breusch Pagan tests have concluded that random effects is best to use. I've also used a Harris-Tzavalis test and found no evidence of a unit root. The output of my model is below

    Click image for larger version

Name:	random effects model.png
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    I wanted to know if there are any other diagnostics tests that should be carried out to test for issues such as heteroscedasticity, autocorrelation, etc.? As far as I can understand GLS is used to correct for these possible problems. Also if there are any obvious issues with the regression output please could you point them out?

    Thanks
    Last edited by Peter Uttley; 09 Mar 2018, 23:13.
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