Suppose You Have a Long,narrow Panel of Data and Estimate

question 14

Multiple Choice

Suppose you have a long,narrow panel of data and estimate a single equation with indicator variables and interaction terms for the individuals.In doing this what assumption from the pooled model have you relaxed?

• A)coefficients on variables are equal across individuals
• B)errors are uncorrelated with any x's
• C)expected value of errors are zero
• D)variances of error terms are equal across individuals

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