In the regression model Unemployment Rate_it = α + γ₁ × Alabama_it + γ₂ × South Carolina_it + γ₃ × North Carolina_it + β₁Income_it+ φYear_it + ε_it, the coefficients for the fixed effects of the model will be given by: A) φ. B) α. C) U_it. D) γ₁, γ₂, γ₃.

Question

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The fixed effects in this model are Alabama, South Carolina, North Carolina, and Income. The coefficients for these fixed effects are given by γ₁, γ₂, γ₃, and β₁Income_it, respectively. The coefficient α represents the intercept, while φ represents the effect of Year. The variable U_it is the error term and not a fixed effect.

In the Regression Model Unemployment Rateit = α + γ1

In the Regression Model Unemployment Rate_it = α + γ₁