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a. Consider the following panel data model: Yit = B1Xit + di + Uit. Describe the steps for fixed effects estimation in detail. (15pt) b.

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a. Consider the following panel data model: Yit = B1Xit + di + Uit. Describe the steps for fixed effects estimation in detail. (15pt) b. What is the strict exogeneity assumption? Why do we need it for the fixed effects estimation? (10pt) a. Consider the following panel data model: Yit = B1Xit + di + Uit. Describe the steps for fixed effects estimation in detail. (15pt) b. What is the strict exogeneity assumption? Why do we need it for the fixed effects estimation? (10pt)

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