econ2p91_ReviewQuestionsMultipleChoice_Chapter10 - Review...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Review Questions: Chapter 10 Regression with Panel Data Multiple Choice 1) The notation for panel data is ( , ), 1,. .., it it X Y i n = and 1,. .., t 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. 2) The difference between an unbalanced and a balanced panel is that .a you cannot have both fixed time effects and fixed entity effects regressions. .b an unbalanced panel contains missing observations for at least one time period or one entity. .c the impact of different regressors are roughly the same for balanced but not for unbalanced panels. .d in the former you may not include drivers who have been drinking in the fatality rate/beer tax study. 3) The Fixed Effects regression model .e has n different intercepts. .f the slope coefficients are allowed to differ across entities, but the intercept is “fixed” (remains unchanged). .g has “fixed” (repaired) the effect of heteroskedasticity. .h
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/28/2011 for the course ECON 2P91 taught by Professor Ogwang during the Winter '09 term at Brock University.

Page1 / 3

econ2p91_ReviewQuestionsMultipleChoice_Chapter10 - Review...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online