Question: Consider the unobserved effects panel data model for a random draw i, where at denotes different year intercepts: Assuming a balanced panel, write down, for
Consider the unobserved effects panel data model for a random draw i, where at denotes different year intercepts:
Assuming a balanced panel, write down, for a given i, the CRE equation that you would estimate using the RE estimator. Which parameter estimates should be identifical to the fixed effects estimates?
Yit = a,d2 + + azdT + BXu + BzXi2 + Bztn + YZ + Y2Zn + Y32 ... + Y4t1Zil + a; + uj, t = 1, 2, ..., T
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