In the panel regression analysis of beer taxes on traffic deaths, the estimation period is 1982-1988 for the 48 contiguous U.S. states. To test for the significance of entity fixed effects, you should calculate the F -statistic and compare it to the critical value from your $F _ { q , \infty }$ distribution, where q equals
A) 48 .
B) 54 .
C) 7 .
D) 47 .

Question

In the panel regression analysis of beer taxes on traffic deaths, the estimation period is 1982-1988 for the 48 contiguous U.S. states. To test for the significance of entity fixed effects, you should calculate the  F -statistic and compare it to the critical value from your $F _ { q , \infty }$ distribution, where  q  equals
A) 48 .
B) 54 .
C) 7 .
D) 47 .

Quizplus · Accepted Answer

The number of entity fixed effects is equal to the number of entities (states) minus one, which is 48 - 1 = 47.

In the Panel Regression Analysis of Beer Taxes on Traffic Fq,∞F _ { q , \infty }Fq,∞​

In the Panel Regression Analysis of Beer Taxes on Traffic $F _ { q , \infty }$