Consider the following decomposition of the error term: v = a +u it i it and...
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Consider the following decomposition of the error term: v = a +u it i it and the second part (uit) caputres_ The first part of this error term (ai) caputres homoskedasticity, heteroskedasticity time constant unobserved factors, time varying unobserved factors heteroskedasticity, homoskedasticity time varying unobserved factors, time constant unobserved factors Consider the following decomposition of the error term: v = a +u it i it and the second part (uit) caputres_ The first part of this error term (ai) caputres homoskedasticity, heteroskedasticity time constant unobserved factors, time varying unobserved factors heteroskedasticity, homoskedasticity time varying unobserved factors, time constant unobserved factors
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