If some of the omitted variables, which you hope to capture in the changes analysis, in fact change over time within entity, the

Question

3 years ago

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If some of the omitted variables, which you hope to capture in the changes analysis, in fact change over time within entity, the

n the FE estimator a. will be unbiased only when allowing for heteroskedastic-robust standard errors. b. may still be biased. c. will only be unbiased in large samples. d. will always be unbiased.

Mathematics

1 answer:

stiv31 [10] · Answer 1 · 2021-11-16T21:10:49+03:00

Answer:

d. will always be unbiased.

Step-by-step explanation:

When some of variables are omitted the estimator on indulge charge regressor may still be unbiased. If there is a special case where T = 2 then the FE estimator will be unbiased. Fixed effect regression model has different intercepts.