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(c) Once the equation has been differenced, there is only one observation per individual. Since the time fixed effects do not
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casual first e Difference : [ Used for Panel Data ! yit = ßot sod2+ + ß, Xit + ai+ Uit ;t=1.2 -03 (1is a model with a singleSo with first differencing all time contant/ Fixed variables will be differenced away; specially ai which was correlated with

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