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 time fixed effects,you should calculate the F-statistic and compare it to the critical value from your Fq,∞ distribution,where q equals
A)6.
B)7.
C)48.
D)53.

Question

Quizplus · Accepted Answer

The time fixed effects are typically tested by including year dummies, and since the period is 1982-1988, there are 7 years. However, the F-test compares the model with and without these dummies, so q equals the number of restrictions, which is 6 (7 years minus 1).

In the Panel Regression Analysis of Beer Taxes on Traffic