First-differenced estimation is ideal for obtaining causal effects of explanatory variables that are constant over time.
Answer the following statement true (T) or false (F)
False
Rationale: Any variable that is constant over time drops out of the analysis using the first-differenced estimation.
You might also like to view...
Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product0015220332442550655758858956The average product generated with 5 units of the input is
A. 50. B. 8. C. 5. D. 10.
In order to predict behavior, economic models must be realistic.
Answer the following statement true (T) or false (F)
Revealed preference is:
A. the idea that people's preferences can be determined by observing their choices and behavior. B. the notion that people reveal the utility they get by reporting it on a numerical scale. C. the method that psychologists, anthropologists, and economists use to measure utility. D. All of these are true.
For certain intangibles that cannot be measured, it is best to
A. guess. B. exclude them from cost benefit analysis, and then calculate how large they must be to reverse the decision. C. reevaluate using the Hicks-Kaldor criterion. D. leave it to the private sector to decide on value.