Part 3

Question 1

For which types of data are panel data models useful?

Answer 1

Question 2

What is de definition of a Linear Heterogeneous Panel Data Model?

Answer 2

Question 3

What are the three major groups of Panel Data?

Answer 3

Question 4

What is the difference between a heterogeneous panel data model and a homogenous panel data model?

Answer 4

Question 5

What is the heterogeneity assumption?

Answer 5

Question 6

What is the pooled estimator and the mean group estimator?

Answer 6

Question 7

What is the a major issue in every Panel Data Study?

Answer 7

Question 8

Why might individual units be interdependent? (examples name four)

Answer 8

Question 9

What is the definition of cross-sectional dependence?

Answer 9

Question 10

What are the consequences of cross-sectional dependence?

Answer 10

Question 11

What are the two main approaches in the literature to model cross-sectiontal dependence?

Answer 11

Question 12

What is the main idea behind the spatial approach of cross-sectional dependence?

Answer 12

Question 13

What is the main idea behind the fractor structure approach?

Answer 13

Question 14

What does the factor structure assume? How does this chnge the error term?

Answer 14

Question 15

When is the main problem of the factor structure approach not a problem? Why is this usually not realistic to assume?

Answer 15

Question 16

What is the assumed DGP of x_{i, t} in the factor structure approach?

Answer 16

Question 17

Why can f_t not simply be plugged into the model?

Answer 17

Question 18

Answer 18

Question 19

What is the assumption of unobserved common effects? What is the assumption of individual-specific errors?

Answer 19

Question 20

What is the assumption of factor loadings?

Answer 20

Question 21

What is the asssumption of rank condition?

Answer 21

Question 22

Why is the assumption of rank condition important?

Answer 22

Question 23

What is the model suggested by Parasan (2006)? What does it use?

Answer 23

Common Correlated Effects Estimator

Question 24

What are the CCE (Common Correlated Effects) estimators for beta? (i, Pooled, Mean Group)

Answer 24

Question 25

What is the interactive fixed effects idea? What is the meaning of lambda_i?

Answer 25

Question 26

Answer 26

Question 27

Answer 27

Question 28

Answer 28

Question 29

What is the Nickel bias?

Answer 29

Question 30

What is the model of the Nickel bias?

Answer 30

Question 31

How is the estimator for rho written? What is the problem with it?

Answer 31

Question 32

What is the idea behind the Arrelano And Bond Estimator?

Answer 32

Question 33

What is the model estimated by the Arrelano and Bond Estimator? Why is it valid?

Answer 33

Question 34

What are the advantages of using the GMM for the ABE?

Answer 34

Question 35

What are some weaknesses of the ABE?

Answer 35