balanced panel Panel Data: Fixed and Random E ects

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Fixed e ects model: The pooled OLS estimators of , and are biased and inconsistent, because the variable c i is omitted and potentially correlated with the other regressors. 4 Random E ects Estimation The random e ects estimator is the feasible generalized least squares (GLS) estimator 0 B @ b RE b RE b RE 1 C A= W0b v 1 1 0b 1y: where W= [ NT ...

  Data, Panels, Fixed, Random, Etcs, Panel data, Fixed and random e ects