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 Fq,∞ distribution,where q equals
A)48.
B)54.
C)7.
D)47.

Question

Quizplus · Accepted Answer

In a panel regression with entity fixed effects, q is the number of entities minus one. Since there are 48 states, q equals 47.

In the Panel Regression Analysis of Beer Taxes on Traffic