An Alternative to Using Simultaneous Equation Models with Panel Data

question 14

Multiple Choice

An alternative to using simultaneous equation models with panel data is:

• A)to use OLS estimates after first differencing the data.
• B)to use fixed effects transformation on the equations and then apply 2SLS.
• C)to convert the equations into reduced form and then apply feasible generalized least squares.
• D)to convert the equations into reduced form and then apply OLS.

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Definitions:

Psychodynamic Therapy

A therapy method for resolving mental stress which is rooted in Freudian theories of psychological processes, focusing on unconscious conflicts.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in influencing behavior and emotions.

Depression

A common mental disorder that causes people to experience depressed mood, loss of interest or pleasure, feelings of guilt or low self-worth, disturbed sleep or appetite, low energy, and poor concentration.

Eclectic Approach

An integrative method in therapy that combines techniques and theories from different schools of psychological thought.