The Two-Way Error Component Model
摘要
Note that \(\lambda _{t}\) is individual-invariant and it accounts for any time-specific effect that is not included in the regression. For example, it could account for strike year effects that disrupt production; oil embargo effects that disrupt the supply of oil and affect its price; Surgeon General reports on the ill-effects of smoking; or government laws restricting smoking in public places, all of which could affect consumption behavior.