Multiple Choice
First-differenced models are preferable to pooled cross-section models because they
A) control for potential autocorrelation.
B) control for potential heteroskedasticity.
C) control for the random effects in the data.
D) remove the time constant component in the error term.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Pooled cross-section models<br>A)control for individual fixed-effects.<br>B)combine observations
Q2: Treating each data point in panel data
Q3: Fixed-effects models and first-differenced models<br>A)assume that the
Q4: Random-effects models are<br>A)almost never the appropriate model
Q5: Panel data differs from time-series data in
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