Question: Use the data in Section 13.9.7 (the Grunfeld data) to fit the random and fixed effect models. There are five firms and 20 years of

Use the data in Section 13.9.7 (the Grunfeld data) to fit the random and fixed effect models. There are five firms and 20 years of data for each. Use the F, LM, and/or Hausman statistics to determine which model, the fixed or random effects model, is preferable for these data.

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The regression model is It Bli BFit B3CirBir We first fit the model by pooled OLS ignoring the specific firm effect OLS Without Group Dummy Variables ... View full answer

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