McqMate
Michael Rodriguez
6 days ago
I'm analyzing panel data on household income and education levels across different regions from 2000 to 2020. When I use OLS with fixed effects, the Breusch-Pagan test shows p < 0.01 for heteroskedasticity. I've applied robust standard errors (vce(robust) in Stata), but the confidence intervals widen so much that some key variables become insignificant. I've also tried log-transforming variables, but it didn't fully resolve the issue. I'm worried about model misspecification and need a practical solution to proceed with my analysis.
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