One of the following is a regression example for which Entity and Time Fixed Effects could be used: a study of the effect of
A) minimum wages on teenage employment using annual data from the 48 contiguous states in 2006 .
B) various performance statistics on the (log of) salaries of baseball pitchers in the American League and the National League in 2005 and 2006.
C) inflation and inflationary expectations on unemployment rates in the United States, using quarterly data from 1960-2006.
D) drinking alcohol on the GPA of 150 students at your university, controlling for incoming SAT scores.
Answer: B
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What will be an ideal response?
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