Which type of model has coefficients that vary with i,but are constant with t?
A)pooled model
B)fixed effects
C)random effects
D)none of these

Question

Quizplus · Accepted Answer

In fixed effects model, the coefficients vary across individuals (i) but are constant across time (t). This means that the model controls for individual-level heterogeneity and focuses on within-individual variation over time. Pooled model assumes that all individuals have the same coefficients, while random effects model allows the coefficients to vary randomly across individuals and time. However, fixed effects model is preferred when individual-level heterogeneity is a concern and when we want to estimate the effect of a variable on the outcome within individuals over time.

Which Type of Model Has Coefficients That Vary with I,but