Question: 10.8 Consider observations 1Yit, Xit2 from the linear panel data model Yit = Xitb1 + ai + lit + uit, where t = 1,c, T;

10.8 Consider observations 1Yit, Xit2 from the linear panel data model Yit = Xitb1 + ai + lit + uit, where t = 1,c, T; i = 1,c, n; and ai + lit is an unobserved entity-specific time trend. How would you estimate b1?

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