LSDV model

1.4Recall that in the LSDV model, one panel unit needs to be selected as the

“baseline”. Suppose that you re-estimate an LSDV model using the same data twice,

each time selecting difffferent unit as baseline. You notice that while estimates of the

dummy coeffiffifficients in the model change, estimates of the slope coeffiffifficients remain the

same. Is this surprising? Why?

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