Panal Data Method ch14 PDF
Panal Data Method ch14 PDF
Chapter 14:
Advanced panel data methods
E[i0j ] = σij IT
Ω = Σ ⊗ IT (9)
where Σ is the VCE of the N error vectors and
⊗ is the Kronecker matrix product (For any
matrices AK×L, BM ×N , A ⊗ B = CKM ×LN . To
form the product matrix, each element of A
scalar multiplies the entire matrix B).