Consider the special panel case where T = 2. If some of the omitted variables, which you hope to capture in the changes analysis, in fact change over time, then the estimator on the included change regressor
A) will be unbiased only when allowing for heteroskedastic-robust standard errors.
B) may still be unbiased.
C) will only be unbiased in large samples.
D) will always be unbiased.
Ans: B) may still be unbiased.
Economics
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Government statisticians adjust GDP figures to include estimates of
A) the value of homemaking (work done within the home). B) the underground economy. C) child-rearing services provided by stay-at-home parents. D) the costs of pollution to society.
Economics
There is an externality present only when
A) private costs equal social benefits. B) private benefits equal social benefits. C) private costs or benefits diverge from social costs or benefits. D) private costs equal social costs.
Economics