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I have panel data related to transportation of commodities, where im looking to see the effect on revenue. I included my dummy year variables, and the remaining 3 variables (all continuous). I used Pooled OLS technique and robust SE. i checked for an unobserved affect using the Wooldridge test which was significant indicating serial correlation. I tried to control for the serial correlation by adding a lagged dependent variable into my model, but still had serial correlation. Any suggestions on how i can further remove serial correlation. Should i tried FE or FD?

I have panel data related to transportation of commodities, where im looking to see the effect on revenue. I included my dummy year variables, and the remaining 3 variables (all continuous). I used Pooled OLS technique and robust SE. i checked for an unobserved affect using the Wooldridge test which was significant indicating serial correlation. I tried to control for the serial correlation by adding a lagged dependent variable into my model, but still had serial correlation. Any suggestions on how i can further remove serial correlation. Should i tried FE or FD?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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I have panel data related to transportation of commodities, where im looking to see the effect on revenue. I included my dummy year variables, and the remaining 3 variables (all continuous). I used Pooled OLS technique and robust SE. i checked for an unobserved affect using the Wooldridge test which was significant indicating serial correlation. I tried to control for the serial correlation by adding a lagged dependent variable into my model, but still had serial correlation. Any suggestions on how i can further remove serial correlation. Should i tried FE or FD?
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