Which of the following assumptions is required for obtaining unbiased random effect estimators?
A. The idiosyncratic errors are heteroskedastic.
B. The unobserved effect is independent of all explanatory variables in all time periods.
C. The idiosyncratic errors are serially correlated.
D. The unobserved effect is correlated with the explanatory variables.
Answer: B
Economics
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Which characteristic is most typical of human resources in developing nations?
A. A small population base B. Low unemployment in urban areas C. Low unemployment in rural areas D. High unemployment in urban areas
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