Panel Data Additional problem 1 Consider the following panel regression model where ai are individual fixed- effects (an
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Panel Data Additional problem 1 Consider the following panel regression model where ai are individual fixed- effects (an
Panel Data Additional problem 1 Consider the following panel regression model where ai are individual fixed- effects (any heterogeneity in Y;) that does not vary over time: Y; = Bo + B1X; + di + Wit i. Provide two ways to control for fixed effects ai You should get a model in which ai has disappeared. In both modified models, what are the assump- tions required to interpret ßı as a causal parameter?
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