Dear forum members,
I'm working on a History thesis and for reasons beyond the scope of this post I will have to work on a Pooled Ols regression.
The data I have access to is organized in a balanced micro panel (20x4).
My question is: what tests will ensure that this Pooled OLS regression is efficient? This is not about choosing a panel model such as FE or RE. Suppose the Pooled OLS model has already been chosen.
I know I have to test the error terms for normality, heteroscedasticity, and autocorrelation. Furthermore, I intend to test each variable for endogeneity and stationarity. However, I believe there are other tests I should perform.
Thank you for your help.
I'm working on a History thesis and for reasons beyond the scope of this post I will have to work on a Pooled Ols regression.
The data I have access to is organized in a balanced micro panel (20x4).
My question is: what tests will ensure that this Pooled OLS regression is efficient? This is not about choosing a panel model such as FE or RE. Suppose the Pooled OLS model has already been chosen.
I know I have to test the error terms for normality, heteroscedasticity, and autocorrelation. Furthermore, I intend to test each variable for endogeneity and stationarity. However, I believe there are other tests I should perform.
Thank you for your help.
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