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hi this is nick in this video i'm going to talk about the fixed effects estimator for panel data that allows us to derive unbiased and consistent estimators for the betas even if there's cross-sectional variation between our explanatory variables and the cross-sectional error term let me explain so for starters let's suppose that we have data on the same economic agents that we can follow for multiple time periods as the time period goes from t equals one to two to three all the way to capital t there are lots of examples of panel data sets like this these would include things like the panel study of income dynamics that allows us to track the demographic and socio-economic characteristics of families and their descendants in the united states going all the way back to 1968. other examples would be things like the health and retirement survey allowing us to track labor force participation of health of older adults before and after they retire and the national longitudinal survey of yo...