A potential downside of using within estimation is:
A) r-squared is less meaningful.
B) the coefficients will be biased.
C) the estimator will not yield estimates of the fixed effects themselves.
D) the standard errors will be larger.

Question

Quizplus · Accepted Answer

Within estimation only provides estimates of the time-varying effects and not the fixed effects. It assumes that the fixed effects are constant over time and therefore cannot estimate them.

A Potential Downside of Using Within Estimation Is