Panel Data Analysis in EViews Crime and deterrence, US NC counties Example 13.9 and problem 14.7 (using crime4.wf1) structure the databes (identify i and t) (but do not let EViews balance anything unless you explicitly want that)

Pooled OLS, clustered errors log(crime it ) = β x it + u it Cov(x it, u it ) = 0

County fixed-effects, iid errors log(crime it ) = β x it + a i + v it Cov(x it, a i ) 0 Cov(x it, v is ) = 0

County random effects, iid errors log(crime it ) = β x it + a i + v it Cov(x it, a i ) = 0 Cov(x it, v is ) = 0

County & year FE, iid errors log(crime it ) = β x it + a i + d t + w it Cov(x it, a i ) 0 Cov(x it, d t ) 0 Cov(x it, w is ) = 0

County & year FE, cluster errors log(crime it ) = β x it + a i + d t + w it Cov(x it, a i ) 0 Cov(x it, d t ) 0 Cov(x it, w is ) = 0

County FD & year FE, cluster errors Δlog(crime it ) = β Δx it + Δd t + Δw it Cov(x it, d t ) 0 Cov(x it, w is ) = 0

Summary of results