For a random effects model the least squares estimator is unbiased and consistent.The errors can be corrected for potential heterogeneity using _________________,but the estimator with minimum variance is _______________.
A)cluster-robust standard errors,GLS
B)White's correction,ML
C)2SLS,fixed effects
D)cluster-robust standard errors,pooled

Question

Quizplus · Accepted Answer

Cluster-robust standard errors can correct for potential heterogeneity, and the estimator with minimum variance in the context of a random effects model is Generalized Least Squares (GLS).

For a Random Effects Model the Least Squares Estimator Is