Hi, community.
I have some questions regarding ARDL model in the form of UECM(Dynamic panel data).I use this technique to estimate EKC Hypothesis for panel of 16 countries.I wonder if I can use this method in the presence of random effects (for example, by using GLS).I also would like to know if I should implement specification tests(autocorrelation, heteroskedasticity and contemporaneous correlation)like fixed effects model.I really appreciate your advice.
Dear Young.
This is a research, try all techniques as possible in relation to literature and see your results.
Run the analysis in the presence of random effect first and see your results. If the results is not good, then find an alternative.
You can then use autocorrelation and heteroscedasticity test as your post estimation test to verify the above.
Wishing you the best
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