Question: 10.8 Consider observations (Yit, Xit) from the linear panel data model Yit = Xitb1 + ai + lit + uit, where t = 1, c,

10.8 Consider observations (Yit, Xit) 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 entityspecific time trend. How would you estimate b1?

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