Breusch-Pagan test after a fixed-effects panel estimation
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I want to check for heteroscedasticity after performing an fixed effects estimation on my unbalanced panel.
-xttest2- doesn't work for me because I have 2 time observations over 308 individuals.
Is there a command I can use?
It's definitly possible to calculate the test statistic if T<N; I've seen it in other papers* my subject. (yardstick competition between municipalities)
• Revelli, F. (2002a) Local taxes, national politics and spatial interactions in English district election results, European Journal of Political Economy, 18, 281-99.
• Finken, Jan (2009) : ‘Yardstick competition in German municipalities’, FiFo-CPE discussion papers, No. 09-3, <http://econstor.eu/bitstream/10419/29691/1/617281254.pdf>.(13/01/13).
• Bosch, N., & Sole´-Olle´, A. (2007), Yardstick competition and the political costs of raising taxes: An
empirical analysis of Spanish municipalities. International Tax and Public Finance, 14(1), 71–92.