You want to study the relationship between weight and height of young children (4th grade to 7th 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 (4th grade to 7th 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