Question
Recall that in the LSDV model, one panel unit needs to be selected as the baseline. Suppose that you re-estimate an LSDV model using the
Recall that in the LSDV model, one panel unit needs to be selected as the "baseline". Suppose that you re-estimate an LSDV model using the same data twice, each time selecting different unit as baseline. You notice that while estimates of the dummy coefficients in the model change, estimates of the slope coefficients remain the same. Is this surprising? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Information System
Authors: James A. Hall
7th Edition
978-1439078570, 1439078572
