The random effects approach _____.
A. cannot be used if the key explanatory variable is constant over time
B. is preferred to pooled OLS because RE is generally more efficient
C. is suitable if the Hausman test rejects the assumption that the unobserved effect is uncorrelated with the explanatory variables
D. is more convincing than fixed effects for policy analysis using aggregate data
Answer: B
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Economic magnitudes measured at the prices actually paid are referred to as ________ magnitudes
A) "real" B) "actual" C) "nominal" D) "unadjusted" E) "gross"
To the extent that the value of money is less predictable, it becomes
A) more acceptable as a store of value.
B) less acceptable as a medium of exchange.
C) more acceptable as a standard of deferred payment.
D) more acceptable as a unit of account.
Which statement is true?
A. In China today, the private sector produces no more than 10% of the country's goods and services. B. Under communism in the Soviet Union, the private sector was almost as large as the government sector. C. In the American economy today, the public sector is almost as large as the private sector. D. None of the statements are true.
Since rent control ________ the total surplus of the market, the policy generates a ________.
A. decreases; producer surplus B. increases; producer surplus C. decreases; deadweight loss D. increases; deadweight loss