Week 6

Question 1

What is the idea of panel data?

Answer 1

Question 2

What is a one-way error component regression model?

Answer 2

Question 3

What is the dummy variable representation of a panel data model?

Answer 3

Question 4

What is the notation of a one-way error component model?

Answer 4

Question 5

What are assumptions of a fixed effects model?

Answer 5

Question 6

What is the aim and problem of estimation of the fixed effects model

Answer 6

Question 7

How is the fixed effects model estimated? What is its derivation?

Answer 7

Question 8

Name the properties of projection matrices.

There are 5

Answer 8

Question 9

What is the within-estimator? How is it derived?

Fixed effects model (obv.)

Answer 9

Question 10

How do we test for fixed effects?

Answer 10

Question 11

What is the Random Effects model? What is the idea of this model?

Answer 11

Question 12

What is the RE model in matrix notation?

Answer 12

Question 13

How is Omega inverted?

Answer 13

Question 14

What is the GLS estimation of beta? Explain the derivation.

In a RE model.

Answer 14

Question 15

What is the between group estimator?

In a RE model

Answer 15

Question 16

What is the Hausman specification test?

Answer 16

Question 17

What is the basic idea of the Hausman test?

Answer 17