Entity Fixed Effects Models

question 9

Multiple Choice

Entity fixed effects models

• A) Allow the intercept in the regression model to differ cross-sectionally but not over time, while all of the slope estimates are fixed both cross-sectionally and over time
• B) Allow the slope in the regression model to differ cross-sectionally but not over time, while the intercept estimates are fixed both cross-sectionally and over time
• C) Allow the intercept in the regression model to differ over time, while all of the slope estimates are different both cross-sectionally and over time
• D) Any of the above could be true depending on the model specification

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Definitions:

Narcotics

Drugs that relieve pain and often induce sleep, typically used for pain relief but have a high potential for abuse or addiction.

Rapid Development

The process of quickly bringing a new product or technology to the market or achieving progress in a short amount of time.

Tolerance

Tolerance is the capacity to endure pain or hardship, or in pharmacology, it refers to the body's adaptation to a drug which reduces its effects over time.

Quarrelsomeness

The tendency to engage in arguments or disputes easily, often with a hostile attitude.