Fixed-Effects Models Are Preferable to Pooled Cross-Section Models Because They

question 21

Multiple Choice

Fixed-effects models are preferable to pooled cross-section models because they

• A)first-difference the data.
• B)control for potential heteroskedasticity.
• C)control for autocorrelation.
• D)remove the time-invariant component of the error term.

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Definitions:

Social Class

A division of a society based on social and economic status, which influences individuals’ opportunities, lifestyles, attitudes, and behavior.

Paul Fussell

An American cultural and literary historian known for his writings on class, war, and social issues in America.

Cultural Capital

Non-financial social assets that promote social mobility beyond economic means, examples include education, intellect, style of speech, dress, or physical appearance.

Upper Class

refers to the highest socioeconomic group in a society, characterized by substantial wealth, influence, and privilege.