say you have 20 observations across time on 10 individuals each. Assuming that the unobserved effects...

say you have 20 observations across time on 10 individuals each. Assuming that the unobserved effects are uncorrelated with the independent variables, what model specification would be appropriate for the following estimation:

(i) individual specific intercepts differ, slopes across individuals are equal but the variance of the error term differs across individuals

(ii) individual specific intercepts differ, slopes across individuals are equal but the errors are contemporaneously correlated across individuals in the same time period

Expert Solution

orchestra answered 2 years ago

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