Which of the following types of variables cannot be included in a fixed effects model?
A)Dummy variable
B)Discrete dependent variable
C)Time-varying independent variable
D)Time-constant independent variable

Question

Quizplus · Accepted Answer

Time-constant independent variables cannot be included in a fixed effects model because the model controls for all time-invariant characteristics of the individuals, effectively differencing out any variable that does not change over time.

Which of the Following Types of Variables Cannot Be Included