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The Benefit of the De-Meaned Approach Over the LSDV Approach

Question 18

Multiple Choice

The benefit of the de-meaned approach over the LSDV approach is:


A) It gives more accurate coefficient estimates.
B) The coefficient estimates have a lower standard error.
C) Easier to implement if there are a lot of different units.
D) We will be able to estimate coefficients on variables that do not vary within unit.

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