Question: Consider the following binary variable version of the fixed effects model. Each regressor Dj is a binary variable that equals 1 when i = j
Consider the following binary variable version of the fixed effects model. Each regressor Dj is a binary variable that equals when i j and otherwise. Note that the binary variable Di for the first group is arbitrarily omitted.
YitXitXitDiDinDniuit
Use the regression in the equation above and the tool palette to the right to answer the following questions. What is the slope and intercept for entity in time period
The slope of entity in time period is
Properly format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg a subscript can be created with the character.
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