Give at Least Three Examples from Macroeconomics and Five from Microeconomics

question 26

Essay

Give at least three examples from macroeconomics and five from microeconomics that involve specified equations in a panel data analysis framework. Indicate in each case what the role of the entity and time fixed effects in terms of omitted variables might be.

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Definitions:

Compounded Semi-annually

Interest calculation method that adds interest to the principal sum twice a year, resulting in interest accumulation on interest already accrued.

Compounded Semi-annually

An interest calculation method where interest is calculated and added to the principal twice a year.

Strip Bond

A financial instrument representing debt, where the main amount and the interest payments have been separated and are traded independently.

Market Rate

The prevailing interest rate available in the marketplace for loans or investments of a similar risk and maturity.