Given the Role of Cross Sectional Fixed Effects in the Empirical

question 33

Multiple Choice

Given the role of cross sectional fixed effects in the empirical strategy for identifying causal effects, instead of conducting hypothesis tests of any one coefficient on a fixed effect being zero, it is typical to conduct what sort of hypothesis test?

• A) A hypothesis test for a fixed effect coefficient being equal to 1 instead of zero.
• B) A hypothesis test for a fixed effect coefficient being equal to -1 instead of zero.
• C) A joint hypothesis test for all of the fixed effect coefficients being equal to zero.
• D) A joint hypothesis test that the fixed effect coefficients are all equal to the treatment effect.

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