The estimator obtained through regression on quasi-demeaned data is called the _____.
A)random effects estimator
B)fixed effects estimator
C)hetroskedasticity-robust OLS estimator
D)instrumental variables estimator

Question

Quizplus · Accepted Answer

The random effects estimator is obtained through regression on quasi-demeaned data, which involves transforming the data to remove the effects that are constant across entities but vary over time, under the assumption that the entity-specific effect is uncorrelated with the independent variables.

The Estimator Obtained Through Regression on Quasi-Demeaned Data Is Called