Consider the Special Panel Case Where T = 2

question 46

Multiple Choice

Consider the special panel case where T = 2. If some of the omitted variables, which you hope to capture in the changes analysis, in fact change over time, then the estimator on the included change regressor

• A)will be unbiased only when allowing for heteroskedastic-robust standard errors.
• B)may still be unbiased.
• C)will only be unbiased in large samples.
• D)will always be unbiased.

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Definitions:

Macroeconomic Statistics

Quantitative measures that capture various aspects of a national economy’s performance, such as GDP, unemployment rates, and inflation, aiding in its analysis and policy formulation.

Macroeconomic Statistics

Quantitative measures that describe the broad economic activities and health of a country, including GDP, inflation rates, and unemployment figures.

Economic Contraction

A decline in the national output as measured by GDP, often associated with a decrease in spending and investment.

Disposable Personal Income

The amount of money that individuals have available to spend and save after income taxes have been accounted for.