(New Question) Consider the following regression equation with panel data: Yt = Bo + B1 Xt + y½ D2; + v» D3; + ·.+ Yn Dng + ut Where X is our regressor of interest and D2; is a binary variable that equals to 1 when i=2 and O otherwise. Binary variables D3 ,. , Dn¡ are defined similarly. Which of the followings is not correct? Assuming there's no other omitted variables, the OLS estimator for B1 is unbiased and consistent. O The equation should be estimated by OLS with clustered heteroskedasticity-robust standard errors. The intercept for entity j (j # 1) is Yj. O The estimation of the above equation is only possible if n is not too large.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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(New Question) Consider the following regression equation with panel data:
Yt = Bo + B1 Xt + y2 D2; + ys D3; + + Yn Dn; + uit
Where X is our regressor of interest and D2; is a binary variable that equals to 1 when i=2 and O
otherwise. Binary variables D3; ,. , Dn¡ are defined similarly. Which of the followings is not correct?
O Assuming there's no other omitted variables, the OLS estimator for B1 is unbiased and consistent.
O The equation should be estimated by OLS with clustered heteroskedasticity-robust standard errors.
O The intercept for entity j (j + 1) is Vj.
O The estimation of the above equation is only possible if n is not too large.
Transcribed Image Text:(New Question) Consider the following regression equation with panel data: Yt = Bo + B1 Xt + y2 D2; + ys D3; + + Yn Dn; + uit Where X is our regressor of interest and D2; is a binary variable that equals to 1 when i=2 and O otherwise. Binary variables D3; ,. , Dn¡ are defined similarly. Which of the followings is not correct? O Assuming there's no other omitted variables, the OLS estimator for B1 is unbiased and consistent. O The equation should be estimated by OLS with clustered heteroskedasticity-robust standard errors. O The intercept for entity j (j + 1) is Vj. O The estimation of the above equation is only possible if n is not too large.
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