What are the advantages of panel data models? Specify the fixed effects model and explain how it can be estimated.
Introduction Panel data models have gained significant importance in empirical economic research due to their ability to control for unobserved heterogeneity and improve the reliability of estimates. Panel data refers to multi-dimensional data involving observations over time for the same individuals, households, firms, or countries. Advantages of Panel Data Models Controls for Unobserved Heterogeneity: Panel […]