Multiple Choice
Random-effects models
A) assume that the time invariant component of the error term is not correlated with the independent variables.
B) first difference the data.
C) are impossible to estimate in STATA.
D) can only be estimated if the panel data only have two time periods.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Panel data differs from time-series data in
Q6: First-differenced models are preferable to pooled cross-section
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
Q11: One can first-difference panel data in a
Q12: Pooled cross-section models are not the preferred
Q13: Suppose that in an effort to
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