If You Included Both Time and Entity Fixed Effects in the Regression

question 14

Multiple Choice

If you included both time and entity fixed effects in the regression model which includes a constant, then

• A)one of the explanatory variables needs to be excluded to avoid perfect multicollinearity.
• B)you can use the "before and after" specification even for T > 2.
• C)you must exclude one of the entity binary variables and one of the time binary variables for the OLS estimator to exist.
• D)the OLS estimator no longer exists.

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Definitions:

Core Time

The period during a work schedule when all employees are required to be present, often used in flexible working arrangements.

Compressed Workweek

A work schedule arrangement that allows employees to work the standard hours in fewer than the traditional number of workdays.

Flexible Work Arrangements

Work options that permit flexibility in terms of “where” and/or “when” work is completed.

Compressed Workweek

An alternate work arrangement where a standard workweek is condensed into fewer days than the typical five, often involving longer individual work days.