The controls for cross-sectional groups in the data generating process are known as:
A) treatment effects.
B) fixed effects.
C) instrumental variables.
D) difference-in-differences.

Question

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Fixed effects refer to the controls for cross-sectional groups in the data generating process. Treatment effects refer to the impact of an intervention on the outcome variable. Instrumental variables are used to address endogeneity in the model. Difference-in-differences is a research design that compares changes in outcomes between treatment and control groups over time.

The Controls for Cross-Sectional Groups in the Data Generating Process