Baum, C. F. (2006). An Introduction to Modern Econometrics Using Stata (Stata Press, ed.).
In Chapter 9 there is written that
Given panel data, we can define several models that arise from the most general linear representation:
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Assume a balanced panel in which there are T observations for each of the N individuals. Since this model contains k x N x T regression coefficients, it cannot be estimated from N x T observations.
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Assume a balanced panel in which there are T observations for each of the N individuals. Since this model contains k x N x T regression coefficients, it cannot be estimated from N x T observations.
1. Why is says I have N x T observations? I should have 1 observation for each time, for each individual AND for each regressor. So I should have k x N x T observations, right?
2. Why this general model cannot be estimated?
0 Response to Panel data: can the model be estimated?
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