Suppose that the fixed effects model is formulated with an overall constant term and n 1 dummy

Question:

Suppose that the fixed effects model is formulated with an overall constant term and n− 1 dummy variables (dropping, say, the last one). Investigate the effect that this supposition has on the set of dummy variable coefficients and on the least squares estimates of the slopes, compared to (11-3).

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: 978-0131395381

7th edition

Authors: William H. Greene

Question Posted: