What Factor Is Associated with Lower Bias in a Model

question 5

Multiple Choice

What factor is associated with lower bias in a model with a lagged dependent variable and fixed effects?

• A) Large number of observations for each period.
• B) Large number of time periods.
• C) A large coefficient on the lagged dependent variable.
• D) Using multiple lags (e.g., the dependent variable from the previous period and the period before that).

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