![]() Heteroscedasticity is a problem often found in cross-sectional regressions but in panel regressions both cross-sections and time-series are used. Some researchers prefer to ignore these tests. Additional user written modules have to be downloaded to conduct heteroscedasticity tests (e.g. Unlike traditional OLS regressions, panel regression analysis in Stata does not come with a good choice of diagnostic tests such as the Breusch-Pagan test for panel regressions. The latter means the residuals should have equal variance. The latter should be independent, without serial correlation and homoscedastic. Most of the assumptions relate to the characteristics of the regression residuals. ![]() In order to rely on the estimated coefficients and consider them accurate representations of true parameters, it is important that the assumptions of linear regressions formulated in the Gauss-Markov theorem should be met. ![]() When performing a panel regression analysis in Stata, additional diagnostic tests are run to detect potential problems with residuals and model specification. ![]()
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