I'm surprised you got any output at all. The \center command isn't really defined, as far as I know, though there is a center environment. But you don't need that, as stuff within equation is centered anyway, unless you specify otherwise. Further, as equation is a displayed math environment, there is no need to use inline math ($...$) or \displaystyle within it -- everything in the environment is displayed math. Lastly, you need extra braces for x_i_t, I got an error message, so write x_{i_t} (Edit: On second thought, glancing at your picture, I guess you're really after x_{it}.).
Code: Select all
\documentclass{article}
\usepackage{amsmath}
\usepackage{lipsum}
\begin{document}
\lipsum[1]
\begin{equation}\label{eq}
y_{i_t} = \alpha_i + \gamma_t + X_{i_t}\beta \sum_h\sum_k\delta_k^hA_{kit}^h + \varepsilon_{it}
\end{equation}
\end{document}

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