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Consider the TIME fixed effects model (a) What are the INTERCEPT and the SLOPE for: (i) entity 1 in time period 1; (ii) entity
Consider the TIME fixed effects model (a) What are the INTERCEPT and the SLOPE for: (i) entity 1 in time period 1; (ii) entity 1 in time period 2; (iii) entity 2 in time period 1; (iv) entity 2 in time period 2? (b) The same model can also be written as: where B2, = 1 if t = 2 and 0 otherwise, B3, it it (i) Co (ii) C 1 = 1 (iii) C2 Y =aX + b +u it it it 9 t Y = c +c_X +c_B2, + it 1 it 0 2 it Express the following coefficients in terms of the coefficients (a,b,,b, i=1,...,n, t= 1,...,T, +c_BT + u T it if t = 3 and 0 otherwise, and so forth. b): 1 2 it " i=1,...,n, t=1,...,T,
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a In the TIME fixed effects model the intercept a represents the average value of Y when all other variables are held constant The slope b represents ...Get Instant Access to Expert-Tailored Solutions
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