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dimitriy
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The FD intercept is the linear time trend coefficient in levels:

$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{it,t+1}-\varepsilon_{i,t}$$$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{i,t+1}-\varepsilon_{i,t}$$

You can add time to your FE spec to check if this is the culprit.

Also some good ideas in this question on why $FD \ne FE$.

The FD intercept is the linear time trend coefficient in levels:

$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{it,t+1}-\varepsilon_{i,t}$$

You can add time to your FE spec to check if this is the culprit.

Also some good ideas in this question on why $FD \ne FE$.

The FD intercept is the linear time trend coefficient in levels:

$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{i,t+1}-\varepsilon_{i,t}$$

You can add time to your FE spec to check if this is the culprit.

Also some good ideas in this question on why $FD \ne FE$.

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dimitriy
  • 38.3k
  • 7
  • 84
  • 168

The FD intercept is the linear time trend coefficient in levels:

$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{it,t+1}-\varepsilon_{i,t}$$

You can add time to your FE spec to check if this is the culprit.

Also some good ideas in this question on why $FD \ne FE$.

The intercept is the linear time trend in levels:

$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{it,t+1}-\varepsilon_{i,t}$$

You can add time to your FE spec to check if this is the culprit.

Also some good ideas in this question on why $FD \ne FE$.

The FD intercept is the linear time trend coefficient in levels:

$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{it,t+1}-\varepsilon_{i,t}$$

You can add time to your FE spec to check if this is the culprit.

Also some good ideas in this question on why $FD \ne FE$.

Source Link
dimitriy
  • 38.3k
  • 7
  • 84
  • 168

The intercept is the linear time trend in levels:

$$y_{i,t+1}-y_{i,t}=\alpha_i-\alpha_i + \beta\cdot (x_{i,t+1}-x_{i,t})+\gamma \cdot (t+1-t)+\varepsilon_{it,t+1}-\varepsilon_{i,t}$$

You can add time to your FE spec to check if this is the culprit.

Also some good ideas in this question on why $FD \ne FE$.