Problem
1. Store the estimates from the FE model, and refit the model with RE. How do these estimates compare? Does a houseman test accept RE as the more appropriate estimator?
2. Refit the FE model in constant elasticity from by using lpackpc laagers, and linkup. How do the results compare to those on the levels variables? Is this form of the model more in line with economic theory?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.