Heteroskedastic individual effects. (a) For the one-way error component model with heteroskedastic (mu_{i}), i.e., (mu_{i} simleft(0, w_{i}^{2}ight)),

Question:

Heteroskedastic individual effects.

(a) For the one-way error component model with heteroskedastic \(\mu_{i}\), i.e., \(\mu_{i} \sim\left(0, w_{i}^{2}ight)\), verify that \(\Omega=E\left(u u^{\prime}ight)\) is given by (5.1) and (5.2).

(b) Using the Wansbeek and Kapteyn (1982) trick show that \(\Omega\) can also be written as in (5.3).

image text in transcribed

image text in transcribed

image text in transcribed

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: