Panel Data - Memorial University of Newfoundland
Panel Data - Memorial University of Newfoundland
Panel Data - Memorial University of Newfoundland
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
All behavioral differences between individual firms and over time are<br />
captured by the intercept. Individual intercepts are included to<br />
“control” for these firm specific differences.<br />
y =β +β x +β x + e<br />
it 1i 2 2it 3 3it it<br />
(15.11)<br />
Principles <strong>of</strong> Econometrics, 3rd Edition<br />
Slide 15-24