TOPIC 3: PANEL DATA MODELS - POOLED OLS

1. 1. Pooled OLS model assumes that the unobserved heterogeneity factor is present in the panel data.

• TRUE

• FALSE

2. 2. In Pooled OLS estimation, the intercept and slope explaining the relationship between regressors and dependent variable are (a)   .

3. 3. Theoretically speaking, Pooled OLS model assumes that the cross-sectional units like countries, firms, individuals in panel data are (a)   and have no unique characteristics.

4. 4. The Stata command to estimate Pooled OLS regression on a panel dataset is (a)   .

5. 5. Pooled OLS model suffers (a)   bias if the assumption about no unobserved heterogeneity factor in the panel data does not hold.