Assume That for the T = 2 Time Periods Case

question 8

Multiple Choice

Assume that for the T = 2 time periods case, you have estimated a simple regression in changes model and found a statistically significant positive intercept. This implies

• A)a negative mean change in the LHS variable in the absence of a change in the RHS variable since you subtract the earlier period from the later period
• B)that the panel estimation approach is flawed since differencing the data eliminates the constant (intercept)in a regression
• C)a positive mean change in the LHS variable in the absence of a change in the RHS variable
• D)that the RHS variable changed between the two subperiods

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