Question: 2. Assume a panel model with individual random effects and fixed time ef- fects: Yit Uit = XB+At+Uit, fi +Vit. (a) Its BLUE estimator

2. Assume a panel model with individual random effects and fixed time ef- fects: Yit Uit = XB+At+Uit, fi +Vit. (a) Its BLUE estimator can be written in the form (C'N-C)-C'Ny. Give a short description of the matrices C and N, including all matrix dimensions; (b) Provide the inverse matrix -. inggrogato happiness

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a In the panel model with individual random effects and fixed time effects the BLUE Best Linear Unbi... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

In Practice Problem 12.2 (p. 316), we presented data testing a new gasoline additive. A large number of mileage measurements on the gasoline without the additive showed a mean of 24.7 miles per...

QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...

Meet Jackie. She has a phobia of dogs that she has had since she was 3 years old. When Jackie was 3, she was playing in her yard and a neighbors dog came up to her and bit her hand. Jackie had to go...

Submitted to Management Science manuscript MS-0001-1922.65 Authors are encouraged to submit new papers to INFORMS journals by means of a style file template, which includes the journal title....

A mixed-error component model. This is based on problem 95.1.4 in Econometric Theory by Baltagi and Krmer (1995). Consider the panel data regression equation with a two-way mixed error component...

Exercises Chapter 2 2.1 Marginal and conditional probability: The social mobility data from Section 2.5 gives a joint probability distribution on (Y1 , Y2 )= (father's occupation, son's occupation)....

Max Liboiron (2021). Attached below: counting for nearly 40 percent of plastic production in Europe' and 33 percent in Canada.* The next largest categories are building and construction, at just over...

do the following,..... Write program that reads a person's first and last names, separated by a space. Then the program outputs last name, comma, first name. Create program that takes in user input...

Note: If you are able to solve this let me know I provide you Excel Data in Comment Question 1 1. Refer to the Excel Data File 2. Estimate the following model using OLS, random effects and fixed...

STATA required Please help me solving this assignment or at least provide screenshot ( Few hours left please soon as possible) Question 1 1. Refer to the Excel Data File 2. Estimate the following...

Linking pay and productivity has been around since the days of the Babylonians. How much do we really know about the relationship?

Write a research paper on the following Online trade in the middle east.

Descriptions Terms This capital budgeting technique calculates the net dollar value of a capital project and its effect on the value of the firm. q , This analytical technique is less reliable for...

Following are several transactions that relate to Bultena Township for the fiscal year 2012 (assume a voucher system is not used). Prepare all the journal entries necessary to record these...

The following transactions took place during 2012. Record these transactions in journal form. Also, indicate the fund in which each transaction is recorded. 1. The city sold some of its street repair...

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31, 2013. To simplify this exercise, the amounts given are in thousands...

What techniques are used to solve decision-making problems under uncertainty? Which technique results in an optimistic decision? Which technique results in a pessimistic decision?

Using the information provided in RE18-3, prepare the journal entries to record Year 1s (a) Construction costs, (b) Partial billings, (c) Cash collections, (d) Gross profit. In RE18-3, Clorad...

How are a growing annuity and growing perpetuity similar?Group of answer choicesNeither has an endBoth have payments that increase by a constant amount over timeBoth have payments that increase at a...

Let Given that and find a solution to Ax = 2b1 + b2 112 253 xi =I-11 solves Ax-b,-13 x;-| 51 solves Ax=b-=14 10 14

Suppose Q is an orthogonal matrix. (a) Prove that K = 2 I - Q - QT is a positive semi-definite matrix. (b) Under what conditions is K > 0?

Let be the augmented matrix for a linear system. For which values of a and b does the system have (i) A unique solution? (ii) Infinitely many solutions? (iii) No solution? 2ba baa a ab

Recently, the manager of the call center for a large Internet bank asked his staff to collect data on a random sample of the banks customers. Data on the following variables were collected and placed...

The National Park Service has started charging a user fee to park at selected trailheads and cross-country ski lots. Some users object to this fee, claiming they already pay taxes for these areas....

You have collected the following information on 15 different real estate investment trusts (REITs). Identify whether the data are cross-sectional or time-series. a. income distribution by region in...