Deck 11: Panel Data Analysis

Question 1

What are panel data?

A) Data containing one unit measured at different time points
B) Data where each unit is measured at more than one time point
C) Data containing skewed variable distributions
D) Data measured at one point in time

Answer 1

B

Question 2

What does it mean when we say that our panel is balanced?

A) When we have more time periods than units
B) When we have a large sample of units
C) When we have an equal number of time periods per unit
D) When we have an unequal number of time periods per unit

Answer 2

C

Question 3

Which model takes into account the time-varying independent variables, the time-invariant independent variables and the unmeasured time-invariant variables?

A) Pooled OLS
B) Between effects
C) Fixed effects
D) Random effects

Answer 3

C

Question 4

How is the time-invariant independent variables and the unmeasured time-invariant variables captured in a fixed effects model?

A) By running an ordinary least squares regression
B) By running an ordinary least squares regression with robust standard errors
C) By taking the mean of each variable for each unit across time, and running a regression on the collapsed dataset of means
D) By including unit dummy variables

Question 5

What is the name of the statistical test that can help us determine whether to choose a fixed effects or a random effects model?

A) Hausman test
B) z-test
C) Chi-squared test
D) Link-Wallace test

Question 6

Random effects is a weighted average between?

A) Pooled OLS and fixed effects
B) Pooled OLS and between effects
C) Between effects and fixed effects
D) Fixed effects and time-fixed effects

Question 7

What characterizes time-series cross-section data?

A) When we have a large number of units recorded at few time points
B) When we have a small or medium sized number of units recorded at many time points
C) When we have a large number of units recorded at many time points
D) When we have a small or medium sized number of units recorded at few time points

Question 8

What does non-stationarity mean?

A) Parameters of our data (such as the mean and variance) do not change over time
B) Parameters of our data (such as the mean and variance) do change over time
C) When time-series data are not influenced by their historical values
D) When time-series data are influenced by their historical values

Question 9

What does lagging variables mean?

A) We use previous values of a variable
B) We use future values of a variable
C) We set all values at its mean across time
D) We log-transform the variable