• Explain how you will determine structural change across more than two time periods using pooled OLS (5) 
• 3.2 Using two-period panel data analysis and a three-variable model, show how first differencing can eliminate the fixed or unobserved effects. (5)
•  3.3 Explain the weaknesses of the first differencing technique in panel data analysis   

Answer rating: 100% (QA)

Pooled OLS wont to derive and consistent estimates even once constant gift however random effects are additional economical Explanation A Pooled information occur once we haveof cross sections however the in every cross section dont essentially same unit Panel information samples of identical crosssectional multiple points in time as so much as I will tell the Pooled OLS estimation is just associate degree run on Panel information so all specific fully unnoticed that a great deal of basic assumptions like of the error term ar profaned B Fixed effects may be a methodology dominant for all whether or not they dont seem to be as long as they keep among some larger This contamination is termed omitted variable bias mounted take away omitted variable bias by changes among across time sometimes by together with dummy variables for th unknown bristics Time mounted effects ar ... View the full answer