One can first-difference panel data in a two-period model by subtracting
A) the previous-period observation from the current-period observation for the dependent variable.
B) the previous-period observation from the current-period observation for the dependent variable and each independent variable.
C) the current-period observation from the previous-period observation for the dependent variable and each independent variable.
D) the current-period observation from the previous-period observation for the independent variable.
Correct Answer:
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Q1: Panel data differs from time-series data in
Q2: First-differenced models are preferable to pooled cross-section
Q3: The fact that panel data varies across
Q4: If there is a pooled cross-section model
Q5: Fixed-effects models are more appropriate than random-effects
Q7: Fixed-effects models
A)remove the time-variant component of the
Q8: Pooled cross-section models
A)control for individual fixed-effects.
B)combine observations
Q9: Treating each data point in panel data
Q10: Fixed-effects models are preferable to pooled cross-section
Q11: Fixed-effects models and first-differenced models
A)assume that the
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