Differencing w/ Multiple Periods o Can extend this method to more periods o Simply difference adjacent periods e So if 3 periods, then subtract period 1 from period 2, period 2 from period 3 and have 2 observations per individual ◆ Simply estimate by Ols, assuming the△ln are uncorrelated over time Economics 20- Prof anderson 10Economics 20 - Prof. Anderson 10 Differencing w/ Multiple Periods Can extend this method to more periods Simply difference adjacent periods So if 3 periods, then subtract period 1 from period 2, period 2 from period 3 and have 2 observations per individual Simply estimate by OLS, assuming the Duit are uncorrelated over time