I've heteroskedasticity in my model result,so my residus are very large. I would like to transform and add them in my model result.That's means, to have results with low residus. I'm using Pooling model. Here my R result:
plm(formula = sp ~ lag(debt) + lag(I(debt^2)) + outgp + +bcour +
gvex + tradeop, data = bdata, model = "pooling", index = c("country",
"year"))
Balanced Panel: n = 15, T = 20, N = 300
Residuals:
Min. 1st Qu. Median 3rd Qu. Max.
-14.06754 -2.00112 -0.43568 1.83239 39.87933
Coefficients:
Estimate Std. Error t-value Pr(>|t|)
(Intercept) -2.66988469 1.22336253 -2.1824 0.02987 *
lag(debt) 0.13411803 0.02180357 6.1512 2.517e-09 ***
lag(I(debt^2)) -0.00057832 0.00010127 -5.7105 2.762e-08 ***
outgp 0.01986735 0.01620570 1.2259 0.22120
bcour 0.23662511 0.03926279 6.0267 5.018e-09 ***
gvex -0.52866311 0.12588780 -4.1995 3.553e-05 ***
tradeop -3.57865159 1.58891292 -2.2523 0.02505 *
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Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
Total Sum of Squares: 8996.6
Residual Sum of Squares: 6660.6
R-Squared: 0.25965
Adj. R-Squared: 0.24449
F-statistic: 17.1269 on 6 and 293 DF, p-value: < 2.22e-16