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    Exam 8: Using Fixed Effects Models to Fight Endogeneity in Panel Data a
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    Pooled OLS Models Are Biased When
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Pooled OLS Models Are Biased When

Question 2

Question 2

Multiple Choice

Pooled OLS models are biased when:


A) When the fixed effects are correlated with the independent variable.
B) When the fixed effects are correlated with the dependent variable.
C) When the fixed effects model is used when in reality there are no fixed effects in the data.
D) When we don't know the direction of the fixed effects.

Correct Answer:

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