Question: Estimate the same model in question (1) using fixed effects (FE) model. What is the estimated price elasticity of air travel demand? Explain why you

Estimate the same model in question (1) using fixed effects (FE) model. What is the estimated price elasticity of air travel demand? Explain why you are not able to estimate the effect of route distance on air travel demand with FE approach. Discuss which approach is preferable for the correct estimation of price elasticity parameter (FE or OLS)? Explain your answer.

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