1.Which of the following assumptions is required to obtain a first-differenced estimator in a two-period panel...
1.Which of the following assumptions is required to obtain a first-differenced estimator in a two-period panel data analysis?
| a. |
The idiosyncratic error at each time period is uncorrelated with the explanatory variables in both time periods. |
|
| b. |
The variance of the error term in the regression model is not constant. |
|
| c. |
The explanatory variable does not change over time for any cross-sectional unit. |
|
| d. |
The explanatory variable changes by the same amount in each time period. |
2.A Chow test _____.
| a. |
cannot be computed for more than two time periods. |
|
| b. |
is used to test the presence of heteroskedasticty in a regression model. |
|
| c. |
cannot detect changes in the slope coefficients of dependent variables over time. |
|
| d. |
is used to determine how multiple regression differs across groups. |
Homework Answers
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