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  • BP test for het in panel data

    Hi everyone,

    I want to conduct a Breusch-Pagan test for het in panel data. so I used the following
    xtivreg y x1 x2 (x1=z1 z2), fe
    predict ehat, e
    gen ehat2=ehat*ehat
    predict yhat, xb
    now I want to regress ehat2 on yhat
    what should I use in this step?? xtreg ehat2 yhat, be
    or
    reg ehat2 yhat
    or
    xtreg ehat2 yhat, fe
    then I used
    scalar LM=e(r2)*e(N)
    scalar pvalue=chi2tail(edf_m),LM)
    I obtained 2 different LM tests
    which method is LM test is the correct?
    Thanks
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