Multiple Choice
Fixed-effects models are preferable to pooled cross-section models because they
A) first-difference the data.
B) control for potential heteroskedasticity.
C) control for autocorrelation.
D) remove the time-invariant component of the error term.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Panel data differs from cross-section data in
Q17: The biggest difference between fixed-effects and random-effects
Q18: Fixed-effects models and first-differenced models<br>A)assume that the
Q19: What is a first-differenced model? How is
Q20: Fixed-effects models are more appropriate than random-effects
Q22: The fact that panel data varies across
Q23: What does the error term look like
Q24: Random-effects models improve on pooled cross-section models
Q25: Suppose that in an effort to explain
Q26: What is a random-effects model? How do