browse encode Municipality, gen(municipality1) *inform stata that your data is panel xtset municipality1 Year *know your variables des EconomicDynamism GovernmentEfficiency Infrastructure Resiliency xtsum EconomicDynamism GovernmentEfficiency Infrastructure Resiliency * test for linearity/associations of the variables pwcorr EconomicDynamism GovernmentEfficiency Infrastructure Resiliency, star (0.05)sig *independent variables are signficantly associated to the dependent variable *test for multicollinearity reg EconomicDynamism GovernmentEfficiency Infrastructure Resiliency vif *based on the results, the model is not suffering from severe multicollinearity *panel regression where economic dynamisn is a function of Govt Efficency, infra, resillency reg EconomicDynamism GovernmentEfficiency Infrastructure Resiliency xtreg EconomicDynamism GovernmentEfficiency Infrastructure Resiliency, fe estimates store fixed *hausmas test (fe or re?) xtreg EconomicDynamism GovernmentEfficiency Infrastructure Resiliency, re estimates store random hausman fixed random *since hausman is less than five 5%, then FE is appropriate * TIME effects test xtreg EconomicDynamism GovernmentEfficiency Infrastructure Resiliency i.Year, fe testparm i.Year *prob>F is less than 0.05 indicating that we will reject the null that the coefficients for all years are jointly equal to zero, hence therre is time fixed-effects needed in the model. xtreg EconomicDynamism GovernmentEfficiency Infrastructure Resiliency i.Year, fe *cross sectional dependence xtcsd, pesaran abs *base on the result, there is no cross sectional dependence *presence of heterokedasticity is only for FE xtreg EconomicDynamism GovernmentEfficiency Infrastructure Resiliency i.Year, fe xttest3 *based on the result, since it is significant, the model is suffereing from heteroscedasticity *serial correlation xtserial EconomicDynamism GovernmentEfficiency Infrastructure Resiliency *based on the result, there is 1st order autocorr. *PCSE was used to address the problem on hetero and 1st order autocorr xtpcse EconomicDynamism GovernmentEfficiency Infrastructure Resiliency i.Year