A Pooled OLS Estimator That Is Based on the Time-Demeaned

question 11

Multiple Choice

A pooled OLS estimator that is based on the time-demeaned variables is called the _____.

• A)random effects estimator
• B)fixed effects estimator
• C)least absolute deviations estimator
• D)instrumental variable estimator

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Definitions:

Lowering Tax Rates

The act of reducing the percentage at which income or corporate profits are taxed, which can affect economic behaviors and government revenues.

Supply-siders

Economists who believe reducing barriers for people to produce (supply) goods and services, like lower taxes, will stimulate economic growth.

Curing Recessions

Efforts and policies aimed at stimulating economic recovery and ending periods of economic decline.

Keynesian Economics

As formulated by John Maynard Keynes, this school believed the private economy was inherently unstable and that government intervention was necessary to prevent recessions from becoming depressions.