# Can I use the fixed effects model on cross-sectional data?

I'm just learning econometrics, so I would like to know if I can use fixed effects/random effects on cross-sectional data. I have read many papers where they use these model with data panel, but my data is cross-sectional. I study the effects on students performance.

• You may add the fixed effects or individual dummies by using penalized regression, such as, Lasso or ridge regression. There is a blog that proposes this approach Oct 8 '18 at 19:07

$$y_{ij} = \boldsymbol{\beta} \cdot \mathbf{x}_{ij} + u_j + \epsilon_{ij}$$
Typically, either $j$ or $i$ is indexing over time, but there's no reason it can't be anything else. The math doesn't care. $i$ could index over students and $j$ could index classroom.