Which of the following assumptions is required to obtain a first-differenced estimator in a two-period panel data analysis?
A) The explanatory variable does not change over time for any cross-sectional unit.
B) The explanatory variable changes by the same amount in each time period.
C) The variance of the error term in the regression model is not constant.
D) The idiosyncratic error at each time period is uncorrelated with the explanatory variables in both time periods.
Correct Answer:
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Q1: If a random sample is drawn at
Q2: A data set is a balanced panel
Q4: Which of the following is true of
Q5: Idiosyncratic error is the error that occurs
Q6: Which of the following assumptions is needed
Q7: Composite error is the error that occurs
Q8: The assumption of "strict exogeneity" in a
Q9: If each variable in a single cross-sectional
Q10: The systematic differences between the control and
Q11: Which of the following is an advantage
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