(Requires Chapter 8)When Using Panel Data and in the Presence

question 36

Multiple Choice

(Requires Chapter 8) When using panel data and in the presence of endogenous regressors

• A)the TSLS does not exist.
• B)you do not have to worry about the validity of instruments, since there are so many fixed effects.
• C)the OLS estimator is consistent.
• D)application of the TSLS estimator is straightforward if you use two time periods and difference the data.

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Definitions:

Struggle With Poverty

The ongoing hardship and difficulties faced by individuals or communities living below the poverty line, affecting their quality of life.

Transitional Poverty

A temporary state of economic hardship experienced by individuals or families as they attempt to move from one socioeconomic status to another.

Laid Off

The termination of employment due to the employer's decision, often because of budget cuts or company downsizing, not because of the employee's personal performance.

Financial Struggle

The challenge of managing one's finances, often due to insufficient income, debt, or unexpected expenses.