The difference between an unbalanced and a balanced panel is that
A)you cannot have both fixed time effects and fixed entity effects regressions.
B)an unbalanced panel contains missing observations for at least one time period or one entity.
C)the impact of different regressors are roughly the same for balanced but not for unbalanced panels.
D)in the former you may not include drivers who have been drinking in the fatality rate/beer tax study.

Question

Quizplus · Accepted Answer

An unbalanced panel contains missing observations for at least one time period or one entity while a balanced panel has complete observations for all time periods and entities. Differences in the impact of different regressors and the inclusion of specific drivers in a study do not depend on panel balance, and the first option is incorrect as fixed time and entity effects can be included in both balanced and unbalanced panels.

The Difference Between an Unbalanced and a Balanced Panel Is