You want to study the relationship between weight and height of young children (4^th grade to 7^th grade). You collect data for more than 400 students and track the progress of these students over the following four years, where you end up with a balanced panel of 400 students (you discard the observations for the students who moved away). Discuss some of the entity fixed effects which you potentially capture by allowing for a binary variable for each of the students. Do you expect significant time fixed effects if you allowed for them?

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The Answer of You want to study the relationship between weight and height of young children (4^th grade to 7^th grade). You collect data for more than 400 students and track the progress of these students over the following four years, where you end up with a balanced panel of 400 students (you discard the observations for the students who moved away). Discuss some of the entity fixed effects which you potentially capture by allowing for a binary variable for each of the students. Do you expect significant time fixed effects if you allowed for them?

You Want to Study the Relationship Between Weight and Height