Part 3 Flashcards
For which types of data are panel data models useful?
What is de definition of a Linear Heterogeneous Panel Data Model?
What are the three major groups of Panel Data?
What is the difference between a heterogeneous panel data model and a homogenous panel data model?
What is the heterogeneity assumption?
What is the pooled estimator and the mean group estimator?
What is the a major issue in every Panel Data Study?
Why might individual units be interdependent? (examples name four)
What is the definition of cross-sectional dependence?
What are the consequences of cross-sectional dependence?
What are the two main approaches in the literature to model cross-sectiontal dependence?
What is the main idea behind the spatial approach of cross-sectional dependence?
What is the main idea behind the fractor structure approach?
What does the factor structure assume? How does this chnge the error term?
When is the main problem of the factor structure approach not a problem? Why is this usually not realistic to assume?
What is the assumed DGP of x_{i, t} in the factor structure approach?
Why can f_t not simply be plugged into the model?
What is the assumption of unobserved common effects? What is the assumption of individual-specific errors?
What is the assumption of factor loadings?
What is the asssumption of rank condition?
Why is the assumption of rank condition important?
What is the model suggested by Parasan (2006)? What does it use?
Common Correlated Effects Estimator
What are the CCE (Common Correlated Effects) estimators for beta? (i, Pooled, Mean Group)
What is the interactive fixed effects idea? What is the meaning of lambda_i?
What is the Nickel bias?
What is the model of the Nickel bias?
How is the estimator for rho written? What is the problem with it?
What is the idea behind the Arrelano And Bond Estimator?
What is the model estimated by the Arrelano and Bond Estimator? Why is it valid?
What are the advantages of using the GMM for the ABE?
What are some weaknesses of the ABE?
