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Questions tagged [fixed-effects-model]

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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Within panel estimator - how to perform standard error adjustment?

I am fitting a within panel model via glm in R and I am trying to understand standard error adjustment as in plm package (to account for loss of degrees of freedom via demeaning): Consider the ...
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Regression for individuals grouped using fixed effect

I have some questions about how to define my regression. So, I want to use fixed effect model in order to estimate the effect of trade openness on gini coefficient. I include 58 countries including ...
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Including constant variables in fixed effects

Question Should I include constant categorical variables in a fixed effects regression? Context I have a panel dataset of businesses. The variables include: panel details: id, year demographics:...
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Parallel trend assumption in diff-in-diff and fixed effects models

What happens if the parallel trend assumption between control and treatment groups (diff-in-diff) or between individuals (individual-level fixed effects model) is not fulfilled?
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Replication of Stata commnad in R

I am not very good at working in R, usually I am working with stata. I just need to replicate one study in R. The command, which I need to replicate from Stata is : ...
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Poisson Regression in R with individual fixed-effects and month/year fixed-effects

I'd like to use a fixed-effect Poisson Regression model to examine whether opting into 2 different schemes (specified as dummies in my model) can lead to increased exercise. I have longitudinal data,...
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Small N Small T Panel Data - options?

I have Panel data for 21 counties over 11 years. Most literature seems based on either small T and large N or small N and large T. I tried applying a fixed effects model (one-way, individual) to the ...
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How to recover fixed effects in two-way panel regression after within transformation

Individual effects only When I want to estimate a fixed effects model without time effects of the form $y_{it} = \mu_i + x_{it} \beta + u_{it}$, I can estimate the coefficients $\beta$ and $\mu_i$ ...
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Are fitted.values available in pglm?

I am using the pglm function in R to fit a Poisson fixed-effects model. According to the documentation, the pglm object should have fitted.values. However, fitted.values(model-name) returns "NULL". ...
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Missing values while using fixed effects model

I have household-level panel data from two time periods. I found out that a good portion of my households have missing values in some variables that I need to control for, in the second time period. ...
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What is the cost using a fixed effect approach when cov(ai,Xit)=0 in panel data?

I wonder what the cost of using fixed effect approach is when cov(ai,Xit)=0. I know the assumption is cov(ai, Xit) not equal to 0, but I don't know the cost of it.
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Difference-in-differences with individual-level panel data

Main Idea I want to estimate the effect of a treatment that affected a group of individuals that are scattered over a larger geographic area in a short matter of time (a week) via DID. I have reason ...
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Which R-squared value to report while using a fixed effects model - within, between or overall?

I am using a fixed effects model with household fixed effects. I just added a year dummy for year fixed effects. Here below is the Stata result screenshot from running the regression. In the ...
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Mixed models. Random slopes only, mean and group centering?

Are random intercepts a theoretical/practical prerequisite to random slopes? Why? I have a three level (rep measures) mixed model where I wouldn't expect lvl 3 variation in initial status of outcome ...
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Interpretation of coefficients for DV in shares

I very ensure about following interpretations, hence I would be very thankful for any advice. Let's say that my dependent variable is a percentage of managers in total employment ((managers employed ...
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Standard errors in fixed effects regression using R

For my master thesis, I want to examine the relationship between consumer credit loans and house prices in Norway after a policy change in mortgages from 2017. To do this I've set up a pooled (...
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Prediction Interval for linear model with fixed effects

I've got a panel data and I'm using a linear model with fixed effects for individuals and time, along with other covariates to explain the variation in a dependent variable. I'm clustering my standard ...
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34 views

Why is my variable being omitted by stata?

I am carrying out a fixed effect regression. I have a dummy variable called female. The dependent variable docvis refers to hospital visits. I created an interaction term between hhkids and female ...
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Fixed effects - correcting for autocorrelation and heteroskedasticity, panel data analysis in R

I have a datset of 25 counties over 11 years, with response variable unemployment ( in %), and 6 explanatory variables (proportion with high school, some economic indicators, etc). After some tests ...
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Write the null hypothesis for nested model test in algebraic form

The reduced model is: lm(y~Age+Sex, data = df); The full model is: lm(y~Age+Sex+Age*Sex, data = df). (...
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Should I be using pooled OLS or Fixed effect regression for my model here and why?

I have run two different regression models, one fixed effect and one pooled OLS on my data. my data looks at the number of visits to hospital regressed over age, marriage, income, insurance etc. I ...
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(How) can “de-meaning” help me solve this “clustering” issue?

I'm not particularly advanced when it comes to statistics and data analysis and have a problem I can't seem to solve. Basically, suppose you're doing school research and have three groups (to which ...
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31 views

Specification of a difference-in-differences model in r

I am working through a difference-in-differences model. While I've learned a good deal browsing SE, I'd like to hear from someone more experienced with fixed effects if my model is correctly specified....
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Defining fixed effect and random effect in a model

I'm unconfident that whether my understanding on fixed effect and random effect is correct: Fixed effect= variable that make inferences about the specific levels. Random effect= variable that make ...
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Instrumental Variables for Foreign Direct Investment

I'm trying to estimate a fixed-effect regression model. Basically my Y is tertiary education enrollment (I'm trying to see the effect of FDI investment in host country, to the extent that whether ...
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Why does pglm give different results thans log-plm?

I'm looking to regress a fixed-effects model on count data. My initial approach was to take the log of regressor on R's plm package. Then I found out about the pglm package, which enables general ...
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How to interact an across panel unit in fixed effect model?

I want to use fixed effect model but I want to test an interaction between female(1 if true) which is not changing across users(id). I wrote Stata code shown below and the results are shown after. IS ...
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Difference-in-differences model with time-fixed effects only

Assume that we have a panel data set with individuals' income (Y) over multiple years and a certain event (POST) in one year that is hypothesized to affect Y for a subgroup of these individuals (TREAT)...
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Including Time Invariant Covariates in a Random Intercept Model

Let us say we have a random intercept model for $n$ individuals $$y_{i,t} = x_{i,t}'\beta + \alpha_i + \epsilon_{i,t} \hspace{35pt} i = 1,...,n$$ where $x_{i,t}'\beta$ is a set of time variant ...
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12 views

Reorganized Panel data in R

I am currently working on a fixed effect model, and have a dataset (csv file) in the form of the following (represents two city over three years): year feature1 feature2 2000 10 14 2001 12 13 2002 13 ...
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Policy change with fixed effects but no control group

In our master thesis we want to examine the relationship between consumer credit loans and housing prices in Norway. Especially regarding a policy change at the start of 2017 (limiting mortgage amount)...
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0answers
8 views

Family fixed/random effects cross section

What is the appropriate Stata command for a within family comparison in cross section dataset? Basically i hear a lot about such comparisons, siblings comparisons or within mother comparison…. Still i ...
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8 views

Median of demeaned variables and fixed effects

I have observations of the profit $y_{it}$ for several firms, noted $i$, over time $t$. For each firm, I compute the mean of $y$ over the years and call it: $\bar{y_i}$. Then I substract this firm-...
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In a fixed effects regression, will the residuals be uncorrelated with the estimated fixed effects?

I have been getting a lot of helpful answers from StackExchange so I'm posting my first question, hoping to get some help with a hw question. I understand generally a fixed effects variable is like ...
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Test for structural break with panel data

I want to study a variable $Y_{it}$ that represents the profit of several firms over time. In particular I want to evaluate whether there is a structural break after a specific year. the idea is to ...
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Within estimator and time fixed effects

If I data on a variable Y for 3 firms (A,B,C) over 3 years (1,2,3), then the linear firm fixed-effects model with year dummies (i.e. time fixed effects) without covariate would be: $Y_{it}=\alpha + \...
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What 'level' of fixed effects should I be using?

I'm trying to see the impact of using the internet at home on individuals' hours worked. To address endogeneity concerns, I am using terrain slope as an instrument, as slope makes it more costly for ...
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53 views

From two-way fixed-effects model to first difference model

Let's say I have a two-way fixed-effects model Yit = α + Xit β + ui + vt + εit where Xit is a vector. Considering the assumptions : data set with balanced panel T= 2 observations per group. My ...
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1answer
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Heterogenous effects in DID models

I am working on a standard DID research design where all the assumptions are met - focused on a policy reform affecting a number of sectors in a country. I would like to improve the design by ...
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What are the uses of panel data regression?

I have a dataset with Cross-section and Time-Series Data. After doing some reading I came accross a concept named as "Panel data analysis/regression". However, I am still not clear how and why we use "...
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Use of lagged dependent variable in panel data

Intro: I’m doing a statistical analysis of men doing 5k-runs. The point of the analysis is to determine, if finishing close to a woman has an effect on their runtime. The variables I have in my ...
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26 views

Error Using Interaction Effect Between Individual and Time Fixed Effects

I am trying to run a two-way fixed effects model with an instrument using the plm function: ...
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0answers
8 views

Panel with four dimensions and fixed effects

Let's assume I have a dependent variable $Y$ at the firm level ($i$) that varies across country ($c$), sector ($s$) and time ($t$). It can be written: $Y_{csi,t}$, which means the variables varies ...
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Fixed-Effects model and Entities with No Variation

Suppose I am interested in the effect of some treatment $T_{it}$. I consider the following simple fixed effects model: $y_{it}=b_0+b_1T_{it}+\gamma_i +e_{it}$ where $\gamma_i$ is individual-level ...
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1answer
82 views

Compare using `lme4` and `nlme` for mixed effects models

Sorry it might be a more Stack Overflow question but I was reading this nice cheat sheet for using function lmer in package lme4 ...
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1answer
82 views

How to fit a longitudinal GAM mixed model (GAMM)

I have repeated measurements of individuals, like this ...
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29 views

3 Level Hierarchical Models in STATA; Null model fails to converge

3 Level Hierarchical Models in STATA; Null model failed to converge About the Dataset I am working with DHS (Demographic and Health Survey Data) data. DHS uses a two-stage cluster sampling process. ...
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Standardisation (normalising) for feature scaling in non-logged data for within transformation model

I wonder if someone could provide an insight for my case. I am interested in normalising my data to obtain unitless state that will allow me to use them in a quadratic model (not translog). Based on ...
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1answer
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control for non-linear effect in a model with two continuous predictors and one categorical DV

Suppose I ask subjects to rate foods from very sour to very sweet, on a scale of from -10 to +10. They say things like A (lemon) is very sour, -10, but B (bread) is pretty sweet, +5. Now I say 'ok ...
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1answer
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Are anxiety measure fixed or random factors in this scenario?

As a psychologist and not a statistician, I have always used ANOVAs to perform analyses on repeated-measures designs but have since learned you should instead use mixed linear modeling with these type ...