Q: Unbalanced design for random effects. Suppose that the random effects model
Unbalanced design for random effects. Suppose that the random effects model of Section 11.5 is to be estimated with a panel in which the groups have different numbers of observations. Let Ti be the nu...
See AnswerQ: The National Institute of Standards and Technology (NIST) has created
The National Institute of Standards and Technology (NIST) has created a Web site that contains a variety of estimation problems, with data sets, designed to test the accuracy of computer programs. (Th...
See AnswerQ: What are the probability limits of (1/n) LM
What are the probability limits of (1/n) LM, where LM is defined in (11-42) under the null hypothesis that 2u = 0 and under the alternative that 2u ≠ 0?
See AnswerQ: A two-way fixed effects model. Suppose that the fixed
A two-way fixed effects model. Suppose that the fixed effects model is modified to include a time-specific dummy variable as well as an individual-specific variable. Then / . At every observation, the...
See AnswerQ: Two-way random effects model. We modify the random effects
Two-way random effects model. We modify the random effects model by the addition of a time-specific disturbance. Thus, where Write out the full disturbance covariance matrix for a data set with n = 2...
See AnswerQ: In Section 11.4.5, we found that the
In Section 11.4.5, we found that the group means of the time-varying variables would work as a control function in estimation of the fixed effects model. That is, although regression of y on X is inco...
See AnswerQ: If the panel has T = 2 periods, the LSDV (
If the panel has T = 2 periods, the LSDV (within groups) estimator gives the same results as first differences. Prove this claim.
See AnswerQ: Compare the fully parametric and semiparametric approaches to estimation of a discrete
Compare the fully parametric and semiparametric approaches to estimation of a discrete choice model such as the multinomial logit model discussed in Chapter 17. What are the benefits and costs of the...
See AnswerQ: For the normal distribution /. Use this result to
For the normal distribution /. Use this result to analyze the two estimators, Use the delta method to obtain the asymptotic variances and covariance of these two functions, assuming the data are d...
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