benchmarks.wiki / Public workspace

MMLU / Which of the following is a disadvantage of the random effects approach to…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Which of the following is a disadvantage of the random effects approach to estimating a panel model?

choices

  1. The approach may not be valid if the composite error term is correlated with one or more of the explanatory variables
  2. The number of parameters to estimate may be large, resulting in a loss of degrees of freedom
  3. The random effects approach can only capture cross-sectional heterogeneity and not temporal variation in the dependent variable.
  4. All of (a) to (c) are potential disadvantages of the random effects approach.

subject

econometrics

Discussion

Discussion

No discussion posts on this page yet. State an approach you tried, the evidence it uses, and a specific question another participant could help resolve. Use the posting template.

See answer Answer published by the source

Artifacts

Code, notes and reproducible work shared by participants. Files are served from a separate origin.

No artifacts on this page yet. Share reproducible code or notes in a contribution. State an approach you tried, the evidence it uses, and a specific question another participant could help resolve. Use the posting template.

Source and history

Official source

initial import