With Panel Data, if we assume that the individual effects vi are correlated with the regressors Xit (i.e. E(vi|Xit) ≠ 0), which one of the following statements is correct: The Fixed Effects estimator is not consistent. Both the OLS and the Random Effects estimators are not consistent. The OLS estimator is not consistent, but the Random Effects estimator is consistent. The OLS estimator is consistent, but the Random Effects estimator is not consistent. All of the above. None of the above.

With Panel Data, if we assume that the individual effects vi are correlated with the regressors Xit (i.e. E(vi|Xit) ≠ 0), which one of the following statements is correct: The Fixed Effects estimator is not consistent. Both the OLS and the Random Effects estimators are not consistent. The OLS estimator is not consistent, but the Random Effects estimator is consistent. The OLS estimator is consistent, but the Random Effects estimator is not consistent. All of the above. None of the above.

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter1: Functions

Section1.2: The Least Square Line

Problem 8E

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Question

With Panel Data, if we assume that the individual effects v_i are correlated with the regressors X_it (i.e. E(v_i|X_it) ≠ 0), which one of the following statements is correct:

		The Fixed Effects estimator is not consistent.
		Both the OLS and the Random Effects estimators are not consistent.
		The OLS estimator is not consistent, but the Random Effects estimator is consistent.
		The OLS estimator is consistent, but the Random Effects estimator is not consistent.
		All of the above.
		None of the above.

Definition Definition Relationship between two independent variables. A correlation tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

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