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Fixed effects model with three time periods Consider the following general fixed effects model for use with a panel data set with three time periods (T = 3): yir = 51 +82 d2: +63 d31 + ẞ1x11 + ... + ẞkxisk + Vit where, for t=1, 2, 3, and time period 1 is the base year: yir = value of dependent variable y for i, in year t, in pounds d2, 1 in the second time period (t = 2), and 0 otherwise d3, =1 in the third time period (t = 3), and 0 otherwise Xirl,..., Xink value of explanatory variables for individual i at time f Vir = composite error consisting of the unobserved, time-constant effect (a) and the idiosyncratic error (uir) If there are 106 cross-sectional units in your balanced panel data set, then the total number of observations you have in your data set is For the first time period (1), the intercept is Which of the following would cause pooled OLS estimation of the model to yield biased and consistent estimators? Check all that apply. Measurement error in any explanatory variable under the classical errors in variables (CEV) assumption a, being uncorrelated with Xit Omitting a time-varying variable that influences y and is correlated with one of the explanatory variables

Fixed effects model with three time periods Consider the following general fixed effects model for use with a panel data set with three time periods (T = 3): yir = 51 +82 d2: +63 d31 + ẞ1x11 + ... + ẞkxisk + Vit where, for t=1, 2, 3, and time period 1 is the base year: yir = value of dependent variable y for i, in year t, in pounds d2, 1 in the second time period (t = 2), and 0 otherwise d3, =1 in the third time period (t = 3), and 0 otherwise Xirl,..., Xink value of explanatory variables for individual i at time f Vir = composite error consisting of the unobserved, time-constant effect (a) and the idiosyncratic error (uir) If there are 106 cross-sectional units in your balanced panel data set, then the total number of observations you have in your data set is For the first time period (1), the intercept is Which of the following would cause pooled OLS estimation of the model to yield biased and consistent estimators? Check all that apply. Measurement error in any explanatory variable under the classical errors in variables (CEV) assumption a, being uncorrelated with Xit Omitting a time-varying variable that influences y and is correlated with one of the explanatory variables

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Fixed effects model with three time periods Consider the following general fixed effects model for use with a panel data set with three time periods (T = 3): yir = 51 +82 d2: +63 d31 + ẞ1x11 + ... + ẞkxisk + Vit where, for t=1, 2, 3, and time period 1 is the base year: yir = value of dependent variable y for i, in year t, in pounds d2, 1 in the second time period (t = 2), and 0 otherwise d3, =1 in the third time period (t = 3), and 0 otherwise Xirl,..., Xink value of explanatory variables for individual i at time f Vir = composite error consisting of the unobserved, time-constant effect (a) and the idiosyncratic error (uir) If there are 106 cross-sectional units in your balanced panel data set, then the total number of observations you have in your data set is For the first time period (1), the intercept is Which of the following would cause pooled OLS estimation of the model to yield biased and consistent estimators? Check all that apply. Measurement error in any explanatory variable under the classical errors in variables (CEV) assumption a, being uncorrelated with Xit Omitting a time-varying variable that influences y and is correlated with one of the explanatory variables
Transcribed Image Text:Fixed effects model with three time periods Consider the following general fixed effects model for use with a panel data set with three time periods (T = 3): yir = 51 +82 d2: +63 d31 + ẞ1x11 + ... + ẞkxisk + Vit where, for t=1, 2, 3, and time period 1 is the base year: yir = value of dependent variable y for i, in year t, in pounds d2, 1 in the second time period (t = 2), and 0 otherwise d3, =1 in the third time period (t = 3), and 0 otherwise Xirl,..., Xink value of explanatory variables for individual i at time f Vir = composite error consisting of the unobserved, time-constant effect (a) and the idiosyncratic error (uir) If there are 106 cross-sectional units in your balanced panel data set, then the total number of observations you have in your data set is For the first time period (1), the intercept is Which of the following would cause pooled OLS estimation of the model to yield biased and consistent estimators? Check all that apply. Measurement error in any explanatory variable under the classical errors in variables (CEV) assumption a, being uncorrelated with Xit Omitting a time-varying variable that influences y and is correlated with one of the explanatory variables
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