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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pggls function in R - weird results

I need to estimate a panel model. I have run the "normal" fixed effects model using plm in R and also wfe. I also wanted to try pggls considering its tolerance of heteroskedasticity and ...
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1answer
37 views

Modelling Fixed effects in panel data regression models

I was given the following equation: $$\sigma_{it} = \beta_0 + \beta_1 x_i + \beta_2y_i + \beta_3vs_{it} + \beta_4vm_{it} + \sum_{i=1} \gamma_i \alpha_i + \sum_{t=1} \omega_t \phi_t + \epsilon_{it}$$ ...
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28 views

cluster-robust standard errors are smaller than unclustered ones in fgls with cluster fixed effects

I'm currently working on some experimental data. The experimental design consists of two treatments. In each treatment, 20 subjects are randomly matched in pairs and participate to a simple game. The ...
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1answer
77 views

Is subtracting individual means in pre-processing an appropriate alternative to dummy variables for fixed effects panel data estimation?

Is subtracting individuals means during pre-processing of panel data exactly equivalent to including dummy variables for fixed effects estimation? If not, what are the differences, and is there some ...
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1answer
69 views

2-stage panel model - am I doing it right?

I ran a 2-stage fixed-effects panel model in R. The goal is to find the effect of strategic alliance participation on firm performance. Alliance participation is not random - firms self-select (and ...
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25 views

R plm: understand pmodel.response

I need help in understanding the pmodel.response function from the R package plm. So far I have interpreted this as a way to get ...
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2answers
80 views

REML or ML to compare two mixed effects models with differing fixed effects, but with the same random effect?

Background: Note: My dataset and r-code are included below text I wish to use AIC to compare two mixed effects models generated using the lme4 package in R. Each model has one fixed effect and one ...
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1answer
52 views

Random and Fixed effect model

Would you explain a practical situation where random effect model is more appropriate than the fixed effect model?
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1answer
67 views

Difference-in-differences with no pre-treatment?

The typical difference-in-differences estimator (as fixed effects) fits a model of the form $$ y_{it} = \alpha_i + \delta T_{it} + X_{it}'\beta + \epsilon_{it} $$ where $T$ is some treatment that ...
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1answer
90 views

Include nesting factor as fixed effect in a GLMM

I have the following GLMM: success ~ age + gender + group/task + (1 + group/task|school/subject), family = binomial I want to know whether participants' ...
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2answers
63 views

A fixed effects regression in Stata that changes when a time invariant variable is included

I am running a fixed effects regression in Stata. If I understood it correctly, a variable that is fixed over time will be omitted from the regression. Hence, it should not influence the regression ...
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1answer
113 views

Do Bayesians believe in Fixed Effect Models? [duplicate]

Given the Bayesian paradigm, is there actually such a thing as a fixed effects model since Bayesians treat all parameters as random variables?
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5answers
397 views

What is the upside of treating a factor as random in a mixed model?

I have a problem embracing the benefits of labeling a model factor as random for a few reasons. To me it appears like in almost all cases the optimal solution is to treat all of the factors as fixed. ...
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1answer
86 views

difference-in-differences with fixed effects

I have two questions related to having fixed effects in the DD model. I have a treatment that occurs at different times (e.g., 2001,2005, etc.). I want to fit a DD model, so I standardize the ...
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0answers
42 views

Unbalanced panel data: Fixed effects?

I have an unbalanced panel dataset with N=10 firms and T=61 days. Because one variable had values outside the theoretical range I had to constrain my dataset, which left me with only 239 observations. ...
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1answer
118 views

Is this an example of Pooled OLS on Panel Data?

I am looking at a study that analyzes the effect of an infrastructure index on infant mortality and child mortality rates. The database has (asset) quintile level data for 47 different countries (from ...
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1answer
195 views

Compare coefficients from two separate panel regressions in Stata

I am trying to compare the coefficients of two panel data regressions with the same dependent variable. What I am aiming at is the following: ...
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1answer
164 views

Limited dependent variable → ordered probit model with Stata

I have a dependent variable, credit rating, and it is a limited dependent variable. Independent variables are profitability, firm size, stock return, etc. I was advised to use Stata and run ...
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1answer
279 views

Interpreting fixed effects coefficients with categorical independent variables

I am trying to find out if change in marital status have effect on person's health. I am using 2 data points panel data. My question is, how to interpret fixed coefficients if independent variable ...
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23 views

Number of observations in plm package, n, T, N

I am new to R. I am using the plm package to run pooled OLS and Fixed Effect. My data set has 130 countries over 33 years with lots of missing values. My model has ...
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1answer
78 views

First Differences and Fixed Effects

I'm aware of the fact that first differences and fixed effects are both designed for the same solution -- removing unobserved unit-level effects. However, I'm unclear on what happens when you include ...
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1answer
76 views

Using first differenced variables in fixed effects model

Deal all, It might be a stupid question but since fixed effects estimator either mean centers the data or uses first differences, is it entirely wrong to take first differences of the data and then ...
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0answers
31 views

co-twin study regression modelling

I want to conduct a regression analysis on a dataset of identical twins. There is a paper by Carlin et. al. 2005 which reviews the models that are designed for twin studies and includes the Stata ...
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41 views

How to estimate a dynamic Tobit model

I have data which correspond to a corner solution. The Tobit-model seems to be adequate for this data. However, I also wants to control for a baseline variable (t-1) and unobserved heterogenity. This ...
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1answer
74 views

How accurate is F test in panel data

I heard that the F-test is to advice you whether to use fixed effects or pooled OLS. However, I didn't find any details about it in books. Only in a very few studies. What is the hypothesis of the ...
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1answer
99 views

Analysing regression results

This question is a bit embarrassing, but I do not have much experience of statistical analysis. The problem I have is that the analysis I do of the results in my paper is so meager. My results from a ...
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2answers
161 views

What is the correct way to deal with multiple fixed effects when dealing with a large number of observations in panel data regression?

I don't have much experience with panel data so I apologize in advance if this sounds ridiculous. Let's say that I am trying to control for individual and temporal fixed effects when running a panel ...
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1answer
680 views

Using pooled OLS when running a model with panel data?

How bad is it to use pooled OLS instead of fixed effects when you have 7 years of panel data? From what I have understood, the risk is that the coefficients will be correlated with the error term, ...
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1answer
38 views

Factors contained in the unobserved effect?

I try to study differences in health care cost between counties over a several years period, using a fixed effects model. I use a cost measure as dependent variable and have some demographic, ...
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68 views

How can I correct for residual autocorrelation in a fixed effect panel model?

The residuals have an AR(2) structure. Is it appropriate to add AR terms to a fixed-effects panel model?
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1answer
66 views

Hausman's test for all $\beta$s – comparing FE vs RE models

I fit several two level models in SAS using PROC MIXED: an empty model with multilevel structure (null), a model with a level 2 covariate (partial model), and a ...
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1answer
37 views

How does including a random effect, change the parameter estimate for a group level covariate?

I'll try and explain where I am getting stuck. I wish to model delay to treatment. I observe patients nested in hospitals. I have a mixture of patient and hospital level covariates. I suspect that ...
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0answers
15 views

What do I do if my sample for cross sections is not random in a panel regression model?

I am trying to implement a panel regression model, but there is one issue: both fixed effects estimation (FE) and random effects estimation (RE) require that the cross section sample be random. For my ...
2
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1answer
317 views

Fixed Effects Gravity Model for forecasting..with time constant variables Stata

I have a large panel data set of global trade flows and I would like to create a model for forecasting between two specific country pairs. I am just having trouble figuring out how to go about it in ...
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62 views

Stata's -margins- shows negative predicting value for count model

I am modeling "Innovation" counts over "HHI" and "squared HHI" with fixed effect poisson model. (My sample is unbalanced, small & wide one.) I am aware of that I can use Stata's -margins- command ...
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1answer
150 views

Specification of panel data

I am trying to find out the best specification for my dataset. I am trying to probe the effectiveness of the special economic zones in Poland in the meaning of growth of the economy in three ...
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0answers
62 views

Fixed effects analysis in Stata

I have a large data set on which I need to run a fixed effect regression. The two variables that I want to control for: year (2001–2008) and industries (20 types). But I apparently need to set the ...
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3answers
398 views

panel data - within-group estimate - individual fixed effects retrieved

I am analyzing panel data. First, I have to decide whether to use a random or fixed effect estimator. The Hausman test suggests to use the fixed effect estimator (also named within group estimator). ...
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1answer
116 views

When to use time dummies in multiple regression

When is it appropriate to use time dummies in multiple regression analysis? I am using pooled ols, random effects model, and fixed effects model. I have a period of 3 years. I don´t know whether it ...
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0answers
37 views

Trouble Interpreting Fixed Effects and What Features Are Fixed

I have a large panel dataset. It follows a number of schools over 10 years. It is essentially set up as follows: Year School VariableOfInterest ExplanatoryVariable InstrumentForExplanatoryVariable I ...
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0answers
56 views

question about multi-level modelling with nested data (R/Stata/SPSS)

I have a dataset composed of observations taken from 16 separate experimental panels, each nested into one of 4 conditions (Treatment A Level 1, Treatment A Level 2, Treatment B Level 1, Treatment B ...
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1answer
117 views

What makes the results differ for fixed-effects models vis-à-vis random effects models?

What makes the results differ for fixed-effects models vis-à-vis random effects models? The Cochrane Collaboration's website indicated that two models can produce different results for a meta ...
3
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1answer
449 views

Heteroskedasticity removed through fixed effect estimation?

I have a large panel data set. Examination of a pooled OLS regression with Breusch Pagan showed heteroskedasticity with all model specifications. I consequently chose to use panel-corrected standard ...
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0answers
12 views

I have survey data where people respond to multiple items. I want to find the avg and SE on each item, controlling for within subject variation.

I have survey data from 650 respondents. Each participant rated 11 items on the same scale. I would like to know, at the population level, how the average of each of these items compare. For ...
5
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0answers
258 views

Panel regressions with an interaction term between a time dummy variable and a time invariant variable

I have estimated the coefficients of the following equation, using the fixed-effect model: $Y_{it}=\alpha _i+ \rho _t + \beta _1 X_{it}+\beta _2 C_i*D_t+\epsilon_{it}$ I have observations from 1980 ...
2
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0answers
79 views

Cross-sectional panel data and a fixed effects model

Assume a dataset that has a time series of a dependent variable for a number of stocks, and then a time series of an independent variable over time. Would applying a fixed effects model on this mean ...
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0answers
24 views

Can splines produce a plot with more than one fixed effect? If so, how can I correct for a fixed effect?

I have my statistician supervisor wanting me to plot a series of graphs using splines. On the x axis I have volume of milk, on the y axis days. Now, he says I need to "correct for age and birth ...
3
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1answer
131 views

Panel Cointegration, Moderating Effects and Multicollinearity

I am running a panel fixed effects regression on 21 countries and 16 years. Its a secondary data taken from OECD website mostly. My model looks like this: $$ \log{(GDP/Labor)}_{i} = \beta_0 +\beta_1 ...
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81 views

How to test for serial correlation with pooled OLS, FE an RE?

I have pooled data for 3 years, and I have come across the problem of serial correlation. Some books mention the problem of serial correlation when pooling the data. My question is: is it possible to ...
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0answers
92 views

Stata's xtlogit (fe, re) equivalent in R?

Stata allows for fixed effects and random effects specification of the logistic regression through the xtlogit fe and xtlogit re ...