The notation for panel data is (X_it, Y_it), i = 1, ..., n and t = 1, ..., T because A)we take into account that the entities included in the panel change over time and are replaced by others. B)the X's represent the observed effects and the Y the omitted fixed effects. C)there are n entities and T time periods. D)n has to be larger than T for the OLS estimator to exist.

Question

Quizplus · Accepted Answer

The notation (X_it, Y_it), i = 1, ..., n and t = 1, ..., T indicates that there are n entities (i) observed over T time periods (t). This makes choice C the correct answer. A, B, and D are all incorrect as they either misinterpret the meaning of the notation or provide irrelevant information.

The Notation for Panel Data Is (Xit, Yit), I =

The Notation for Panel Data Is (X_it, Y_it), I =