Which of the Following Assumptions Is Required to Obtain a First-Differenced

question 6

Multiple Choice

Which of the following assumptions is required to obtain a first-differenced estimator in a two-period panel data analysis?

• A)The explanatory variable does not change over time for any cross-sectional unit.
• B)The explanatory variable changes by the same amount in each time period.
• C)The variance of the error term in the regression model is not constant.
• D)The idiosyncratic error at each time period is uncorrelated with the explanatory variables in both time periods.

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Definitions:

Ethical Climates

The collective moral atmosphere of an organization, shaped by policies, practices, and leaders, which influences ethical decision-making and behaviors.

Normative Theories

Theories that prescribe how things should or ought to be, often based on norms or standards.

Ethics

A set of moral principles or values governing individual behavior, signifying what is right and wrong.

Neutralizers

Factors that diminish or nullify the effectiveness of leadership actions or behaviors.