Multiple Choice
Fixed-effects models are more appropriate than random-effects models when
A) the error terms are autocorrelated.
B) the independent variables are constant over time.
C) the time invariant component of the error term is correlated with any of the independent variables.
D) the error term is not constant.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q18: Fixed-effects models and first-differenced models<br>A)assume that the
Q19: What is a first-differenced model? How is
Q21: Fixed-effects models are preferable to pooled cross-section
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