Random-effects models
A) assume that the time invariant component of the error term is not correlated with the independent variables.
B) first difference the data.
C) are impossible to estimate in STATA.
D) can only be estimated if the panel data only have two time periods.
Correct Answer:
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Q13: Pooled cross-section models are not the preferred
Q14: Random-effects models are more appropriate than fixed-effects
Q15: Fixed-effects models and first-differenced models
A)assume that the
Q16: Random-effects models are
A)almost never the appropriate model
Q17: Fixed-effects models and first-differenced models
A)assume that the
Q19: The biggest difference between fixed-effects and random-effects
Q20: Panel data differs from cross-section data in
Q21: What is a random-effects model? How do
Q22: Suppose that in an effort to explain
Q23: What is a first-differenced model? How is
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