Multiple Choice
Fixed-effects models and first-differenced models
A) assume that the time-invariant component of the error term is not correlated with the independent variables.
B) both add dummy variables to control for individual observations.
C) provide identical results if there are only two years of data.
D) do not completely remove the time-invariant component of the error term.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Suppose that in an effort to
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Q19: What is a first-differenced model? How is
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