Two-way random effects model. We modify the random effects model by the addition of a time-specific disturbance.

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Two-way random effects model. We modify the random effects model by the addition of a time-specific disturbance. Thus,

where

Write out the full disturbance covariance matrix for a data set with n = 2 and T = 2.

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Econometric Analysis

ISBN: 978-0131395381

7th edition

Authors: William H. Greene

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Question Posted: Nov 16, 2018 07:27 AM

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Two-way random effects model. We modify the random effects model by the addition of a time-specific disturbance.

Question:

Ya = a + X,ß + ɛit + Ui + Vị,

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The covariance matrix wo...View the full answer

Econometric Analysis

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