You Want to Study the Relationship Between Weight and Height

question 32

Essay

You want to study the relationship between weight and height of young children (4th grade to 7th grade).You collect data for more than 400 students and track the progress of these students over the following four years,where you end up with a balanced panel of 400 students (you discard the observations for the students who moved away).Discuss some of the entity fixed effects which you potentially capture by allowing for a binary variable for each of the students.Do you expect significant time fixed effects if you allowed for them?

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Definitions:

Quarterly Compounding

A technique in which interest is computed and then compounded to the main amount quarterly.

Nominal Rate

The stated interest rate of a bond or loan, not adjusting for inflation or the compounding of interest.

Monthly Compounding

The monthly interest computation strategy that involves both the starting principal amount and the earned interest from earlier times.

Appraised Value

Represents the estimated monetary value of a property as determined by a qualified appraiser based on its characteristics and the selling prices of comparable properties.