Baltagi, Badi H.; Li, Qi - In: Statistics & Probability Letters 11 (1991) 3, pp. 277-280
This paper derives a simple lagrange multiplier (LM) test which jointly tests the presence of random individual effects and serial correlation. This test is an extension of the Breusch and Pagan (1980) LM test. It is computationally simple and requires only the OLS residuals. It should prove...
