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Which of the following is a reason why fixed effect models can't estimate coefficients on variables that do not vary within unit? A, The errors will be homoscedastic. B, The de-meaned variables will not vary. C, We can estimate such a variable with fixed effects. D, Because no fixed effects exists in such a case.

Which of the following is a reason why fixed effect models can't estimate coefficients on variables that do not vary within unit? A, The errors will be homoscedastic. B, The de-meaned variables will not vary. C, We can estimate such a variable with fixed effects. D, Because no fixed effects exists in such a case.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Which of the following is a reason why fixed effect models can't estimate coefficients on variables that do not vary within unit? A, The errors will be homoscedastic. B, The de-meaned variables will not vary. C, We can estimate such a variable with fixed effects. D, Because no fixed effects exists in such a case.
Transcribed Image Text:Which of the following is a reason why fixed effect models can't estimate coefficients on variables that do not vary within unit? A, The errors will be homoscedastic. B, The de-meaned variables will not vary. C, We can estimate such a variable with fixed effects. D, Because no fixed effects exists in such a case.
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