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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Workaround for marginal effects and their significance in panel models when there is no such a package (in R)

I figured out that margins (from R, mimics Stata) is a good way to get marginal effects (and their significance, CI, ...) for ...
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Difference between Breusch-Pagan test and Honda's test for time fixed effects in plmtest

I am trying to decide whether to include time fixed effects in my model. ...
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28 views

How to calculate the observed absolute treatment effect?

I'm reading this article. The authors indicated that for a random sample of 12 characteristics and 3600 patients affected in tow arms (control and treatment arm), they fitted some treatment effect ...
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51 views

Negative Adjusted $R^2$ in twoway effects within model

I am having serious trouble understanding the results of my Fixed Effects panel regression. I am using two fixed effects (on year and regions) and I get a negative Adjusted R2 (i am using the plm ...
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Where are the Wald p-values and where are the LRT ones in the resulf of mixed models? [closed]

I read, that there are many methods of determining the degrees of freedom, thus calculating the p-values for fixed effects in mixed models. I read, that the worst is the Wald test and the Log-...
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Counterfactuals in Econometric Modeling (Abortion-Crime Hypothesis Revisited)

Donohue and Levitt (2019) recently published a working paper revisiting the abortion-crime link. My question is specific to equation (2) in their paper (see below): $$ ln(CRIME_{st}) = \beta_{1}...
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Panel OLS: regression per industry

I did a Panel data regression with 4,000 U.S. firms of 12 different industries over a period of 20 years. I also included several control variables and controlled for the year and industry effects. ...
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Panel data regression (R)- temperatures at weather stations correlated across time and across stations

I have a balanced panel dataset with a few dozen weather stations' hourly temperature readings across several decades. I have a measure of population density around the weather station over time as ...
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How to interpret a fixed effect model

I am doing a research for a school project and I have a hard time to interpret my results from a fixed effect model. So far, I found this:Interpretation of fixed effect model (panel data). Though, it ...
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How to interpret not significant fixed effects?

I tried to make a fixed effect model to see the causal effect of GINI (independent variable) to Criminal violence (dependent variable). This is how I did: I took 2010 data and 2016 data. (t1=2010 and ...
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Cross-sectional data with fixed effects

In the experimental design, using cross-sectional data to generate OLS regression, after controlling the individual observed characters such as job title, is there any problem adding individual fixed ...
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Hausmann test for Fixed vs Random Effects Models

I run a fixed and random effects model with the same variables and got similar results. The Hausmann test indicated (=1) that I should use the Random Effects Model. However, when I added a lag ...
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Structural equation modeling mathematical/analytical estimation of latent variables

I want to know how latent variables are estimated in structural equation modeling. I do not understand at what point and in what way the standard SEM software comes up with the estimates for latent ...
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Correlation of categorical data to binomial response in R

I'm looking to analyze the correlation between a categorical input variable and a binomial response variable, but I'm not sure how to organize my data or if I'm planning the right analysis. Here's my ...
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OLS and Fixed Effect showing same results

I am currently working on a tax paper and using a panel data of three Asian countries. after running OLS and Fixed Effect both shows the same results. is it possible to have same results? my function ...
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1answer
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Need intercept for plm (Fixed effects) in R

all, I am new to this forum. I have a question of fixed effects in R....So I am trying to use plm function to find fixed effects like following: ...
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51 views

Comparing regression coefficients between non-nested regression models

I would like to evaluate whether two coefficients from regression models that are non-nested are statistically significantly different from one another. Specifically, I have models a) and b), where a)...
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Simple question about the source of variation after fixed effects

Could you please give me the intuition of where does the variation comes from a fixed effects regression? I understand the simpler structures, such as: $y_{it}=\beta_0+\beta_1x_{it}+\alpha_i+\alpha_t+...
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Modelling duration: {binary dependent variable & Logit} vs {duration as dependent variable & Fixed Effects}

I am working with duration data. My analysis uses as dependent variable a binary variable indicating whether the individual has divorced yet in time t (Y=1) or not (Y=0). However, the literature on ...
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Replicating results from R pglm (binomial fixed effects model)

Edit: I have updated this question with the solution below: I am trying to understand how pglm estimates fixed effects models for binomial dependent variables by replicating the same model with the ...
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Fixed effects in linear model

I am fitting a linear model on some panel data $$y_{it} = \sigma_{cr} + x_{it}^\top\beta + \mu_i + \delta_t+ \epsilon_{it}$$ where $\mu_i$ is individual fixed effect (in the sense used in ...
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Applying settlement and Regional fixed effects

I'm reading a paper by Gyöngyösi and Verner (2019), and noticed that the authors have included fixed effects at the settlement (seems to be akin to village/town) and at the region level, in a number ...
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Explaining Profitability in Banks Using Panel Data Dynamic/Fixed Effects Model

I am currently looking to study the profitability of banks. My 4 independent variables, which are taken from banks balance sheet, are just financial ratios. My time is 13 Years, and I have 21 banks. ...
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How do you address a key dummy variable if you failed the Hausman test for panel data?

I have a panel model and am primarily interested in the impact of a dummy variable. Unfortunately, my model failed the Hausman test indicating that I should use fixed effect rather than random effect. ...
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Country and year fixed effects models i.Year vs

My aim is to estimate a model with country and year fixed effects. I both have a variable with the years in long format, and a series of dummy variables for each year. My concern arises because I ...
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demeaning or differentiation in fixed-effect equation

I have panel data (with short time-dimension $T>2$) and I consider a simple model of the form: $$y_{i,t} = x_{i,t} \beta + c_i + \epsilon_{i,t}$$ where $E(x_{i,s}\epsilon_{i,t})=0$ and $\epsilon_{i,...
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what does it mean by “treat fixed effects as parameters”?

Consider a regression model for $i=1,\cdots,N$ and $t= 1,\cdots,T$. I assume $N\rightarrow \infty$ while $T$ is a fixed finite number. $$y_{it} = x_{it}\beta + \alpha_i + \alpha_t +\varepsilon_{it}, $...
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How to deal with treatment effect at state level but observations at school level?

I have a panel of schools and I want to estimate the effect of a state level policy on school level outcomes (all schools in a treated state are treated). I can't use a fixed effects model since the ...
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Is modeling location as a categorical variable in an OLS regression considered a fixed effect model?

My thesis advisor recommended me to model the monthly electricity consumption of households as a function of their state and multiple other regressors. In R, I turned the state variable into a ...
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compare coefficients from different regression

I estimate the following models using the Hausman-Taylor estimator: $$y_{i,t} = a_{0} + B_1 controls_{i,t} + \beta_1x_{i,t=2000} + B_2 Year_t + B_3 x_{i,t=2000}*Year_t + e_{i,t}, (1) $$ $$y_{i,...
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How to write a logit regression in a journal format?

I was inspired by the following question: How to write a logit and probit regression equation? To ask for advice on how to write a logit regression equation in a suitable format for an academic ...
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Difference between “Within” estimator for $Y_\textit{diff} = Y_{t_i} - Y_{t_{i - 1}}$ vs “First Difference” estimator for $Y_{t_i}$

I am using a diff-in-diff strategy and have a few question. I am not getting equivalent coefficient estimates for the two following regressions on panel data: a panel regression with a fixed ...
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Difference between “X+Y” versus “X*Y” number of fixed-effects

I'm doing a fixed-effects regression on panel data. Each cross-sectional unit is identified uniquely by two variables (X and Y). If I regress the outcome variable (P) over the dependent variable (Q), ...
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37 views

Lagged Dependent Variable: Using Fixed Effects and Pooled OLS

I have an unbalanced panel and want to estimate if war (a binary variable) has an effect on different outcomes, for example labor force participation. But the outcome variable is clearly path-...
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24 views

Time fixed effects and stationarity data

Currently, I am working with a panel data with which I try to explain households real expenditure on health (hre) from the occurrence of natural disasters (nd). In particular, unit root tests suggest ...
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How to remove collinearity from a fixed-effects difference-in-difference regression?

I'm doing a difference-in-difference regression with fixed effects. I'm analysing the effect of removing financial incentives from quality indicators, in health clinics. I have a dummy variable for '...
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Should I call this a fixed effects or differences in differences model?

I have a question regarding what terminology should I use in my paper when I consider the following model: $y_{it} = \alpha + \beta_0T_i + \beta_1\text{Time}_{t} + \beta_2(\text{Time}_{t} \times T_i)...
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Fixed effects regression with different time periods

I have a panel survey of self-assessed levels of household resilience in three nearby villages, with observations collected over the course of 10 separate survey waves (observations are collected on a ...
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Multilevel models for panel data

I have nested Data from a Panel: individuals in regions; regions in countries. I know that fixed or random effects will account for the hierarchical structure. However, I am not just interested in ...
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Coefficient sign flips after applying Fixed Effects

Good day everybody, I am currently writing my master thesis and I research whether family owned companies (FFF=1 if family owned, 0 otherwise) have a positive or negative effect on the performance of ...
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25 views

Omitted control variables in fe model

I have a panel data, and to choose my estimation model I conducted the Hausman Test. It says that I should use the fe model, however my fe model has omitted dummy variables. Is this a problem as my ...
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1answer
63 views

Group & Time fixed effects in a Difference-in-Difference Model

I'm fairly new to the field of econometrics and currently struggling to understand the literature regarding minimum wage policies and their effect on employment. So the equation that I see in almost ...
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Show that the first-differenced estimator is numerically identical to the fixed effects estimator

The problem here is to show that the first-differences estimator of the beta parameter in the model is numerically the same as the fixed-effects estimator of the same parameter.
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Standard errors of fixed effects

Using panel data, the fixed effect regression specification is given by $y_{it} = a_i + \beta' x_{it} + \epsilon_{it}$ where $a_i$ are the fixed effects. The fixed effects estimator $\beta_{FE}$ ...
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44 views

Interpreting nested mixed effects modelling output

I am having difficulties in interpreting my R output for a multilevel model I have conducted using the NLME package. I'm looking to answer the following questions: 1) What are the predictors of ...
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63 views

Fixed Effects: Group level variables but individual level outcomes

tl;dr: In fixed effects and first difference estimation, does having sets of individuals where the change in $X_{it}$ over time is identical lead to estimation problems? When using fixed effects (FE) ...
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Is this a random or a fixed effect?

I have a question about one of the variables in my study and whether or not it should be considered a random effect. I'm conducting a study of my school's 24 general learning outcomes (or "skills".) ...
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Hausman Test when doing Fixed Effects Panel Regression

I'm currently doing a Fixed Effects panel regression on my data and would like to know whether it would be useful to carry out Hausman tests. From what I understood from lectures, the Hausman test ...
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Combining difference-in-differences and fixed effects

I've seen several related posts to this topic here and elsewhere (e.g. Statalist). However, after reading through them I'm still somewhat confused on why we would want to combine DID with fixed ...
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Panel data model to test dummy variable IV with little variation

I have never done estimation with panel data, but I want to test the impact of using a particular service on the probation rates in a state's court districts (N=22). I have a balanced data set with ...