subject
Business, 06.06.2021 22:00 chell6170

Differenced equation with three time periods Consider the following general fixed effects model for use with a panel data set with three time periods ( T=3): where, for t 1, 2, 3, and time period 1 is the base year: itvalue of dependent variable y for i, in year t, in pounds d2binary variable equal to 1 otherwise dbinary variable equal to 1 in the third time period (t3), and 0 otherwise Titi , , Titk value of explanatory variables for individual i at time t itcomposite error consisting of the unobserved, time-constant effect (ai) and the idiosyncratic error (uit) in the second time period (t2), and O
Differencing the data in the adjacent period yields the following differenced equation
The critical requirement for OLS estimates of the differenced equation to be consistent is that Δυǐt be uncorrelated with ΔΧǐlj for all j and for which time periods?
a. t = 3
b. t - 2
c. t = 1
t -2 For t-2,Ad2- For t3, Ada " Therefore, the differencing the data leads to a differenced equation that have an intercept True or False: When the time intercepts in the original model are not of direct interest, the differenced equation is typically estimated with an ntercept.
A. True
B. False

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 18:30, srtero
Shareholders of tesla recently expressed concerns that elon musk should give up some of his power on tesla's board by appointing two independent directors. which of the following is not a reason why elon musk is perceived to have significant power over tesla's board? 1. he is the founder of the firm and a successful entrepreneur, thus board members may be hesitant to challenge him.2. as the ceo and chairman of the firm he can easily determine what the board should discuss and how it should vote on strategic issues.3. all board members, except for kimbal, have been appointed to the board during elon's tenure.4. many of the firm's directors are outsider investment managers whose interests would not be aligned with those of firms' shareholders.
Answers: 3
image
Business, 22.06.2019 10:20, LadyHolmes67
Sye chase started and operated a small family architectural firm in 2016. the firm was affected by two events: (1) chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. there were $250 of supplies on hand as of december 31, 2016. record the two transactions in the accounts. record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. post the entries in the t-accounts and prepare a post-closing trial balance.
Answers: 1
image
Business, 22.06.2019 13:50, veronica25681
When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars
Answers: 2
image
Business, 22.06.2019 15:20, amulets5239
Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.
Answers: 3
You know the right answer?
Differenced equation with three time periods Consider the following general fixed effects model for...

Questions in other subjects:

Konu
History, 20.01.2021 23:30
Konu
Mathematics, 20.01.2021 23:30
Konu
Computers and Technology, 20.01.2021 23:30