Two-way random effects model, we modify the random effects model by the addition of a time specific

Question:

Two-way random effects model, we modify the random effects model by the addition of a time specific disturbance. Thus, yit = α + β'xit + εit + ui + vt, where

image

Write out the full covariance matrix for a data set with n = 2 and T = 2.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Econometric Analysis

ISBN: 978-0130661890

5th Edition

Authors: William H. Greene

Question Posted: