lecture 7 key terms

Question 1

pooled ols

Answer 1

estimator that treats the panel as a large cross section with nT observations

Question 2

cluster robust std errors

Answer 2

std errors that remain valid in the pols estimator

Question 3

random effects gls

Answer 3

estimator that assumes e[ Vi | Xi ] = 0 and estimates B parameters efficiently in large samples by weighting the observations on the basis of a consistent estimator

Question 4

fixed effects ols

Answer 4

estimator that assumes unobserved individual effects are not mean independent of the regressors

Question 5

hausman test

Answer 5

test used to detect if unobserved heterogeneity is correlated with the regressors; null no correlation