Multiple Choice
Pooled cross-section models are not the preferred estimators for panel data models because they
A) are heteroskedastic.
B) are quasi-differenced.
C) do nothing to account for the time constant component of the error term.
D) create a dummy variable for each individual in the data set.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Suppose that in an effort to explain
Q8: What is a pooled cross-section model? For
Q9: If there is a pooled cross-section model
Q10: Random-effects models<br>A)assume that the time invariant component
Q11: One can first-difference panel data in a
Q13: Suppose that in an effort to
Q14: Fixed-effects models<br>A)remove the time-variant component of the
Q15: What is panel data? How does it
Q16: Panel data differs from cross-section data in
Q17: The biggest difference between fixed-effects and random-effects