(New Question) Consider the following regression equation with panel data: Yt = Bo + B1 Xt + y2 D2; + ys D3; + + Yn Dn; + uit Where X is our regressor of interest and D2; is a binary variable that...


(New Question) Consider the following regression equation with panel data:<br>Yt = Bo + B1 Xt + y2 D2; + ys D3; + + Yn Dn; + uit<br>Where X is our regressor of interest and D2; is a binary variable that equals to 1 when i=2 and O<br>otherwise. Binary variables D3; ,. , Dn¡ are defined similarly. Which of the followings is not correct?<br>O Assuming there's no other omitted variables, the OLS estimator for B1 is unbiased and consistent.<br>O The equation should be estimated by OLS with clustered heteroskedasticity-robust standard errors.<br>O The intercept for entity j (j + 1) is Vj.<br>O The estimation of the above equation is only possible if n is not too large.<br>

Extracted text: (New Question) Consider the following regression equation with panel data: Yt = Bo + B1 Xt + y2 D2; + ys D3; + + Yn Dn; + uit Where X is our regressor of interest and D2; is a binary variable that equals to 1 when i=2 and O otherwise. Binary variables D3; ,. , Dn¡ are defined similarly. Which of the followings is not correct? O Assuming there's no other omitted variables, the OLS estimator for B1 is unbiased and consistent. O The equation should be estimated by OLS with clustered heteroskedasticity-robust standard errors. O The intercept for entity j (j + 1) is Vj. O The estimation of the above equation is only possible if n is not too large.

Jun 03, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here