Consider the Following Panel Data Regression with a Single Explanatory

question 23

Essay

Consider the following panel data regression with a single explanatory variable
Yit = β0 + β1Xit + uit.
In each of the examples below,you will be adding entity and time fixed effects.Indicate the total number of coefficients that need to be estimated.
(a)The effect of beer taxes on the fatality rate,annual data,1982-1988,nine U.S.regions (New England,Pacific,Mid-Atlantic,East North Central,etc. ).
(b)The effect of the minimum wage on teenage employment,annual data,1963-2000,five Canadian Regions (Atlantic Provinces,Quebec,Ontario,Prairies,British Columbia).
(c)The effect of savings rates on per capita income,data for three decades (1960-1969,1970-1979,1980-1989;one observation per decade),104 countries of the world.
(d)The effect of pitching quality in baseball (as measured by the Team ERA)on the winning percentage,annual data,1998-1999 season,1999-2000 season,30 teams.

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Definitions:

Transfer Prices

Prices used for transactions between divisions of the same company, often used for budgeting and taxation purposes.

Actual Costs

The real costs incurred by a business, including all expenses related to production, operation, and maintenance.

Standard Costs

Predetermined costs for materials, labor, and overhead used in budgeting and assessing performance by comparing them to actual costs.

Inventory Decrease

A reduction in the quantity of goods held in stock by a business.