Hello everyone,
I am planning to conduct a panel analysis with T=60 (time periods) and N=25 (cross-sectional units). After testing for them,
I have addressed the issues of heteroskedasticity and autocorrelation by using robust standard errors (e.g., xtreg, fe robust or xtreg, fe vce(cluster country1)). However, I am wondering if there is a way to account for cross-sectional dependence as well. Can the xtscc command help me in this regard? I appreciate the assistance from anyone who can provide insights on this matter. Thank you.
I am planning to conduct a panel analysis with T=60 (time periods) and N=25 (cross-sectional units). After testing for them,
I have addressed the issues of heteroskedasticity and autocorrelation by using robust standard errors (e.g., xtreg, fe robust or xtreg, fe vce(cluster country1)). However, I am wondering if there is a way to account for cross-sectional dependence as well. Can the xtscc command help me in this regard? I appreciate the assistance from anyone who can provide insights on this matter. Thank you.
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