(Requires Chapter 8)When Using Panel Data and in the Presence

question 36

Multiple Choice

(Requires Chapter 8) When using panel data and in the presence of endogenous regressors

• A)the TSLS does not exist.
• B)you do not have to worry about the validity of instruments, since there are so many fixed effects.
• C)the OLS estimator is consistent.
• D)application of the TSLS estimator is straightforward if you use two time periods and difference the data.

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Definitions:

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Random Assignment

A method used in experiments to allocate participants to different groups using randomization, ensuring each participant has an equal chance of being placed in any group.

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