Consider the following equation and determine the class of model that it best represents
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JNU SIS 2021 Question 94: Data types and panel data
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Consider the following equation and determine the class of model that it best represents Yᵢₜ = β₀ + β₁ xᵢₜ + εᵢ + uᵢₜ (A) A fixed effects model (B) A time fixed effects model (C) A random effects model (D) A pure time series model
Also written as: Consider the following equation and determine the class of model that it best represents Y_(it) = beta_0 + beta_1 x_(it) + epsilon_i + u_(it)
Data types and panel data has come up 5 times in 4 exams since 2015.
What this question tests
This question is on Panel data: fixed and random effects, part of Data types and panel data in Econometrics.
Models for data on the same units over time, and how to choose between them.
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