Consider observations (Y it , X it ) from the linear panel data model 11eb9b5b_3e9f_043a_bf3e_a936b93df578_SM2686_00 where t = 1,..., T ; i = 1, …, A; and i + i t is an unobserved individual-specific time trend. How would you estimate ß 1

Introduction to Econometrics 3rd Edition by James Stock, James Stock

Edition 3ISBN: 978-9352863501

Edition 3ISBN: 978-9352863501

Exercise 11

Consider observations (Y it , X it ) from the linear panel data model

where t = 1,..., T ; i = 1, …, A; and i + i t is an unobserved individual-specific time trend. How would you estimate ß 1

Explanation

Verified

Consider is an unobserved individual sp...