Section 13 Models for Pooled and Panel Data
12 2 3 3 1111 122 33 1111TTTT it i it it it titt ii i ii yxxe TTTT yxxe o Subtracting the means from the original equation yields yy x x x x e eit i it i it i it i 22 2 3 3 3 or yx xe it it it it 22 3 3where the ~ indicates deviation from the unit mean
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