In biostatistics, fixed-effects may mean population-average effects. In econometrics, fixed-effects may represent the observed quantities in terms of explanatory variables that are treated as if the quantities were non-random.

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Computing the predicted value from a panel data model with the plm R package

I am estimating the following panel data twoways fixed effect model: y = alfa*y.lag + beta1*z + beta2*z^2 + theta*id + gamma*t (1) where ...
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12 firms and a total of 204 observations, can I use pooled OLS with firm-dummies or should I use fixed factor?

I am studying the effect of government ownership on firm performance, more specifically I am studying the effect of the government reducing their share in companies which are already partly ...
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28 views

PCA on fixed effects variables

I would like to run a panel logit model with fixed-effects on three indices, i.e. company, industry and time. The data set comprises around 1000 companies (index i) and 15 industries (j) over 6 years ...
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Test fixed effects for joint significance in R

Just as in this post I'm looking to test for the joint significance of the fixed effects in a model. Unlike the post I referred to, I'm looking to test each fixed effect individually. I have used a ...
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22 views

Logistic Regression with Household Fixed Effects, SPSS

I have cross-sectional data on households and individuals for several countries. I am interested in the marginal effect of a particular dichotomous individual variable $D_i$ (dummy denoting whether ...
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16 views

Durbin-Watson statistic below 2, fixed effects model, EViews

I am asking for your advice. I am working with unbalanced panel data set. Sample contains data about 11 largest Finnish insurance companies, time period 14 years. Dependent variable is profitability ...
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30 views

Cluster Robust Standard Errors vs GMM

I want to estimate a linear model on a panel data set using fixed effects and my dependent variable has positive serial correlation. I also have to address heteroskedasticity. I have read that two-way ...
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10 views

Fixed effects 'within' estimator as a function of g group coefficients

Suppose I have a model $Y_{gt}= B_0 + B_1* X_{gt} + a_g$ I would like to understand the relationship between $B'$, the coefficient after demeaning, and $B_g$, the coefficient from running a ...
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1answer
66 views

Can you interact the entity in fixed effects estimation?

I have estimated housing affordability (RRI) by fixed effects using the equation below: The 'r' represents regional effects and 't' represents time effects. This estimation works in Stata but are ...
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12 views

Changed signs from correlation to unique effect [duplicate]

I am running a fixed effects regression and I found that one of the significant independent variables has a substantial positive correlation with the dependent variable but a negative unique effect in ...
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15 views

Stata: Test if fixed effects are needed

In Stata, what is the command I should use to test if fixed effects are needed in my panel data regression? The output to test for redundant fixed effects should be Cross-section F-Test ...
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2answers
46 views

Redundant Fixed Effects Test

What is a Redundant Fixed Effects Test? How do I run it in Stata? I can't find much about it using the help in Stata or by searching on the Web. Any help will be appreciated. Thank you
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17 views

Fixed Effect vs Random Effect Output

I am currently a statistics student taking an designing experiments class. At this point I feel I am getting a good grip on when to choose between a fixed effects, random effects, and mixed effects ...
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7 views

Implications of using fixed effects to account for hierarchical data structure

I am currently implementing a hidden Markov model in R, using the msm package. The data I am using are drawn from a cluster-randomized trial; i.e. there is a ...
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0answers
26 views

Why are the fixed effects of a panel probit regression inconsistent?

I was taught that a probit with fixed effects would not be consistent because the estimates of a non-linear model with a link function other than the canonical (in this case the logit) are not ...
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1answer
37 views

Fixed effects in logistic regression

I understand that using fixed effects in the context of a logistic regression estimated using a panel of firms can be problematic. For example, if we have a panel of firms across multiple years, firm ...
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48 views

Fixed vs. Random Effects models for binary response: Understanding “glmer” output “Correlation of Fixed Effects”

There seems to be very little explanation about the summary output obtained from the glmer package in R. To elaborate, I will start with my understanding of the Fixed Effects (FE) and Random Effects ...
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63 views

Pooled OLS, fixed, random or mixed effects?

I am analysing a simple balanced panel data with the following variables: ...
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10 views

panel data wage equations

I have in my panel data X countries, personal IDs for each individual per country and year. The panel runs for X years. I set the panel based on ID and year. IDs are grouped per country. Running ...
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8 views

Fixed time effect vs variable controlling for a part of the sample period

To control for time fixed effect, I have included in my model a dummy variable for each year. However, since some years of the sample period are especially relevant (those corresponding to the ...
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71 views

Is fixed effects model using demeaning equivalent to the LSDV model?

Provided that the specification is right, will these two different ways of removing the cross sectional bias result in the exactly same result (contrasting to first difference which will result in ...
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31 views

Multilevel model with repeated data and time fixed effects?

I am using pooled cross sectional survey data to estimate prefernce for redistribution. I have 33 countries for 6 survey rounds covering the periods 2000-2013. I would like to estimate the effects ...
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14 views

Weighting supercedes fixed effects?

I came across a surprising "result" when analyzing some data and I'm wondering if it is actually a known result, and why it works. I have a dataset that has been partitioned into ...
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1answer
48 views

Panel data estimation for country-fixed, time-varying share of y

I want to estimate the following equation using a panel data set with countries $i$ and years $t$, preferably in R: $$ y_{it} = \beta_1 \cdot x_{1,it} + \beta_2 ...
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Intuition behind fixed effects

Im trying to explain the intuition behind fixed effects to a group of people with no background in (formal) regression analysis. Explaining the intuition behind Diff-in-Diff estimation of the impact ...
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Feasible Multinomial Logit with large number of fixed effects

Is there a way to run something similar to a multinomial logit model with a large number of fixed effects that converges in a reasonable amount of time (I am using Stata)?
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1answer
96 views

Hausman test for panel data

I am performing a Hausman test to decide whether to use fixed effects or random effects model. The results I get are as follows: ...
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28 views

Bayesian fixed effects model and invariant variables

Within a fixed effects approach, the effects of invariant variables cannot be estimated. Their effects are captured by the fixed effects. However, when I estimate following Bayesian fixed effects ...
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1answer
127 views

Fixed effects or Random effects model?

I am trying to understand the difference between fixed and random effects modelling. The panel data I have is in the form of basic longitudinal panel time series. I know that I can use the Hauseman ...
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1answer
67 views

Real motivation for using mixed effect models, and when to use them and when not to

My question might sound naïve, but despite my internet search, I wasn't able to find a satisfactory answer. I've been introduced to linear regression, linear fixed effect and linear mixed effect ...
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1answer
30 views

Analysis of clustered data

I have records of $multiple$ visits from many different patients in several different clinics (i.e. visits nested within patients nested within clinic) and plan to perform an analysis that takes into ...
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6 views

FE Model: independence of residual and firm specific component

I'm estimating a fixed effects model and want to consider Petersen's (2009) suggestion: "The components of X (μ and ν) and ε (γ and η) have zero mean, finite variance, and are independent of each ...
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1answer
62 views

Fixed Effects and Dynamic Panel Data

I have a theoretical model that suggests I should estimate the following regression using longitudinal data: $s_{it} = \eta_{i} + \beta_0 x_{it} + \beta_1 x_{it}^2 + \epsilon_{it}$ where $x_{it} ...
3
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1answer
72 views

Can I do panel regression if all my covariates are time-invariant?

We have a data set where our outcome of interest varies over 10 years, but the explanatory variable of interest and all of the potential confounders are time-invariant. I am quite certain that a panel ...
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28 views

Confidence interval for psychometric binomial GLM model on more than one subject in R

I'm trying to estimate the confidence interval of a psychometric curve (binomial probit GLM), for a population (now only two subjects). Suppose I've subject "a" and subject "b", which performs ...
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1answer
97 views

Year-fixed effects in a pre-post OLS regression analysis

Let's say I have panel data for the period 2000-2009 and I run a pre-post OLS regression analysis where the pre-period is 2000-2004 and the post-period 2005-2009. Does it make sense to use year*period ...
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446 views

How to apply heteroskedasticity and autocorrelation tests to panel data in eviews 8?

I am trying to test for heteroskedasticity and/or autocorrelation in my fixed effects panel regression in Eviews 8. There do not appear to be the necessary tests available. The Breusch-Pagan LM test ...
2
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1answer
111 views

Interpret effect of adding random effects to ordinal regression (R - ordinal package - clmm)

I know there are already lots of questions around this topic (especially this one and this one) but I haven't really seen anything that directly helps me (It will be obvious I'm not a great ...
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1answer
35 views

Bins and Year Fixed Effects

I am trying to understand the difference between two regression models. Before more complex models are run (ie. quantile) I split an key independent variable into bins to see if the relationship is ...
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Fixed parameter estimates of parent factors in a nested design

Summary: What is happening with parameter estimates of factors that are the 'parents' of nested factors? Data: My analysis involves testing the effect of different parameter settings for automatic ...
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2answers
73 views

Endogeneity justification

I'm using a fixed-effects model to analyze car prices based on product's characteristics during a five year period. Steel price is used among others explanatory variables. How to justify possible ...
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12 views

Help with fixed effects regression: adding variables turns regressors insignificant [duplicate]

after composing my model for estimating the relationship between the old-age dependency ratio (share of elderly, i.e. 65+ who are dependent on the working population) and GDP per capita, I stumbled ...
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37 views

Two basic questions on hierarchical/multilevel modeling re: specific term interpretation and when to use in general

Suppose a hierarchical model with varying intercepts and varying slopes, with a single individual-level predictor $x$ and a single cluster-level predictor $z$. After inserting the level 2 equations ...
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50 views

Using R : linear model (lm) - Fixed Effect Model - Vary intercept by different factor than the coefficient

I am having a problem setting up a panel data model (Fixed Effects) At the moment I am running the following code: ...
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1answer
67 views

Is this logit model a multilevel model, and what is the correct way to model it?

I am analyzing a sample of about 6000 actions carried out by about 500 multinational companies in about 80 countries during a 6 year period. Actions are carried out randomly, and are not longitudinal ...
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1answer
14 views

fixed-effect nested factors in R with only SOME combinations present

I have a large data wth numerical response and two categorical factors: date and site. There are about 350 dates and 25 sites, but not all sites have observations on every single date (most have only ...
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164 views

Panel data with N < T heteroscedasticity and autocorrelation. Should I include country dummies?

I have panel data of $N=18$ countries with $T=72$ months. Heteroskedasticity and autocorrelation are present in the dataset. I was working in Stata with xtreg fixed ...
3
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1answer
79 views

Hausman test FE vs. RE in case that FE is not consistent

I have a twin panel data and want to estimate simple wage equation (interest in return to education). I use fixed effects(first differencing) to account for family background.(Based on: Ashenfelter ...
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25 views

Interpreting fixed effect result

I've estimated my fixed effect model and a selection of the results are as follows; R-sq: within = 0.6827 between = 0.3321 overall = 0.4672 F test that all u_i=0: F(50, 499) = ...
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1answer
83 views

Using year fixed effects on data with yearly observations

I have a panel data set with yearly observations of various firms over a period of 5 years. I am running a fixed effects model in Stata using xtreg. Is it ...