Treating each data point in panel data as an individual observation and not accounting for the fact that individuals are observed over many time periods is referred to as estimating a ____ model.
A)static time-series
B)heteroskedastic consistent
C)pooled cross-section
D)fixed-effects

Question

Quizplus · Accepted Answer

Pooled cross-section model treats each data point as an individual observation without taking into account the fact that individuals are observed over multiple time periods, hence it is the best choice for this scenario. Static time-series models only use time series data and do not account for cross-sectional differences, heteroskedastic consistent models are used to correct for heteroskedasticity, and fixed-effects models account for time-invariant individual differences.

Treating Each Data Point in Panel Data as an Individual