Question 1

Which of the following is a difference between a fixed effects estimator and a first-difference estimator?

Accepted Answer

A) The fixed effects estimators are always larger than the first difference estimators in a two-period panel data analysis. 
B) The fixed effects estimator is more efficient than the first-difference estimator when the idiosyncratic errors are serially uncorrelated. 
C) The first difference estimator is more sensitive to nonnormality and heteroskedasticity. 
D) The bias in the first difference estimator depends on the time period (T) of analysis while the bias in the fixed effect does not depend on T. 
A) The fixed effects estimators are always larger than the first difference estimators in a two-period panel data analysis. 
B) The fixed effects estimator is more efficient than the first-difference estimator when the idiosyncratic errors are serially uncorrelated. 
C) The first difference estimator is more sensitive to nonnormality and heteroskedasticity. 
D) The bias in the first difference estimator depends on the time period (T) of analysis while the bias in the fixed effect does not depend on T.

Question 2

To obtain an estimator that reproduces the fixed effects estimates on the time-varying explanatory variables, _____.

Accepted Answer

A) ​one must check whether the time-demeaning allows one to interpret the estimates 
B) ​one must check whether time-constant variables can be included in the fixed effects 
C) ​one must be able to interpret the time variations 
D) ​one must be careful in constructing the time averages 
A) ​one must check whether the time-demeaning allows one to interpret the estimates 
B) ​one must check whether time-constant variables can be included in the fixed effects 
C) ​one must be able to interpret the time variations 
D) ​one must be careful in constructing the time averages

Question 3

What should be the degrees of freedom (df) for fixed effects estimation if the data set includes 'N' cross sectional units over 'T' time periods and the regression model has 'k' independent variables?

Accepted Answer

A) N-kT 
B) NT-k 
C) NT-N-k 
D) N-T-k 
A) N-kT 
B) NT-k 
C) NT-N-k 
D) N-T-k

Question 4

Which of the following types of variables cannot be included in a fixed effects model?

Accepted Answer

A) Dummy variable 
B) Discrete dependent variable 
C) Time-varying independent variable 
D) Time-constant independent variable 
A) Dummy variable 
B) Discrete dependent variable 
C) Time-varying independent variable 
D) Time-constant independent variable

Question 5

An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect?

Accepted Answer

A) Random effects estimation 
B) Fixed effects estimation 
C) Ordinary least squares estimation 
D) Weighted Least squares estimation 
A) Random effects estimation 
B) Fixed effects estimation 
C) Ordinary least squares estimation 
D) Weighted Least squares estimation

Question 6

A data set is called an unbalanced panel if it has missing years for at least some cross-sectional units in the sample.

Accepted Answer

A) True 
 B)False

Question 7

Suppose a policy intervention is correlated not just with level differences among units but is also correlated with trend differences. Which of the following analysis would be the most appropriate?

Accepted Answer

A) Fixed effects 
B) First-differenced 
C) Heterogenous trend 
D) Random effects. 
A) Fixed effects 
B) First-differenced 
C) Heterogenous trend 
D) Random effects.

Which of the following is a difference between a fixed effects estimator and a first-difference estimator?

To obtain an estimator that reproduces the fixed effects estimates on the time-varying explanatory variables, _____.

What should be the degrees of freedom (df) for fixed effects estimation if the data set includes 'N' cross sectional units over 'T' time periods and the regression model has 'k' independent variables?

Which of the following types of variables cannot be included in a fixed effects model?

An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect?

A data set is called an unbalanced panel if it has missing years for at least some cross-sectional units in the sample.

Suppose a policy intervention is correlated not just with level differences among units but is also correlated with trend differences. Which of the following analysis would be the most appropriate?

The Nature of Econometrics and Economic Data

The Simple Regression Model

Multiple Regression Analysis Estimation

Multiple Regression Analysis Inference

Multiple Regression Analysis Ols Asymptotics

Multiple Regression Analysis Further Issues

Multiple Regression Analysis With Qualitative Information

Heteroskedasticity

More on Specification and Data Issues

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Sries Data

Serial Correlation and Heteroskedasticity in Time Series Regressions

Pooling Cross Sections Across Time Simple Panel Data Methods

Instrumental Variables Estimation and Two Strage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Correctons

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters

Exam 14: Advanced Panel Data Methods

Which of the following is a difference between a fixed effects estimator and a first-difference estimator?

To obtain an estimator that reproduces the fixed effects estimates on the time-varying explanatory variables, _____.

What should be the degrees of freedom (df) for fixed effects estimation if the data set includes 'N' cross sectional units over 'T' time periods and the regression model has 'k' independent variables?

Which of the following types of variables cannot be included in a fixed effects model?

An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect?

A data set is called an unbalanced panel if it has missing years for at least some cross-sectional units in the sample.

Suppose a policy intervention is correlated not just with level differences among units but is also correlated with trend differences. Which of the following analysis would be the most appropriate?

The Nature of Econometrics and Economic Data

The Simple Regression Model

Multiple Regression Analysis Estimation

Multiple Regression Analysis Inference

Multiple Regression Analysis Ols Asymptotics

Multiple Regression Analysis Further Issues

Multiple Regression Analysis With Qualitative Information

Heteroskedasticity

More on Specification and Data Issues

Basic Regression Analysis With Time Series Data

Further Issues in Using Ols With Time Sries Data

Serial Correlation and Heteroskedasticity in Time Series Regressions

Pooling Cross Sections Across Time Simple Panel Data Methods

Instrumental Variables Estimation and Two Strage Least Squares

Simultaneous Equations Models

Limited Dependent Variable Models and Sample Selection Correctons

Advanced Time Series Topics

Carrying Out an Empirical Project

Filters