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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Could the first differences estimator be a better choice than fixed effects, regardless of serial correlation and heteroskedasticity?

TLDR: Is the first differences-estimator a better choice than a fixed effects model for panels where the demeaned dimension is categorical with three categories, where two of them usually have no ...
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33 views

Extract variance of the fixed effect in a glmm

I would like to get the variation (variance component) in incidence (inc.) within each habitat while being mindful of random factors such as season and site This is my data set: Incidence: ...
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95 views

The difference in interpretation between a country and a year dummy, a country-year dummy and both

I am trying to expand my knowledge about the different interpretations of combinations of fixed effects. I am using a pooled cross section dataset with observations at the firm level. The dataset ...
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215 views

Panel Data, Fixed Effects regression

I have a question about the fixed effects model. I have 25 manufacturing sectors for a 12 year period (balanced panel data set) and I try to find out the effect of each sector's investment ...
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IShould I used a discrete time independent variable to determine impact of time on dependent variable of interest when using fixed or random effects?

I have a data set where the same individuals have been surveyed over six different time points - i.e. panel data. I am interested in determining whether changes in my dependent variable of interest (e....
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Comparing clustering of standard errors between felm and feols functions

I'm using the lfe and fixest packages to run regressions with high-dimensional fixed effects. For these regressions, I would ...
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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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43 views

How do random effects adjust for confounding in a model?

How do random effects adjust for confounding in a model? This post explains that they do just as fixed effects do. This makes sense intuitively. However, I don't understand how the inclusion of a ...
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Performing a Mediation Analysis for Fixed Effects Model using bootstrap

I'd like to perform a mediation analysis using a fixed effects regression model. My understanding is, that I 1) calculate the base model without the moderator 2) calculate a FE regression of the IVs ...
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20 views

Interpretation of location-fixed, fixed and random effects

I am really confused on how to interprete these 3 different models. Can anyone explain this to me with the help of this little example maybe. I was thinking that i would test the relationship between ...
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Is is possible to use GMM on a data set where T>N?

I am using annual data on 5 US states over the last 25 years, so N=5 and T=25. Currently, I am using fixed effects to estimate my model which I arrived at after using the Hausman to compare it against ...
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Estimating policy intervention effect for comparison groups but no control

I have panel data in 6 waves for land parcels that include 11 covariates that are known to affect the outcome of interest (probability of becoming a protected area). Six of the covariates are time-...
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261 views

Run fixed effect and logit regression on a national survey that need to be “weighted” in R?

I am a beginner user of R. I am using a national survey to test what variables influence the participation in complementary pensions (the participation in complementary pension is voluntary in my ...
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What does it mean if a fixed effects regression gives the same coefficients as one that has no fixed effects?

I am doing a difference-in-differences analysis, looking at whether environmental regulation has an effect on exports. I added fixed effects for country and time, but on STATA it gave me the same ...
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119 views

Interpretation of interaction in presence of squared terms

I am running a fixed effects model with two independent variables, their quadratic terms, and the interaction of the two variables. $IV = b_0 + b_1X + b_2Y + b_3X_{sq} + b_4Y_{sq} + b_5XY$ How do I ...
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34 views

robustness in panel regression analysis

I am running a fixed effects panel regression as under $y=a+bx+e$ where y=dependant variable, $x$=control variables, $a$=individual effects, $b$=slope, $e$=error term. I first ran the FE panel ...
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53 views

Fixed-Effects Regression for Effect of a Binary Independent Variable

I have a large dataset of regional tourism rates for each year for the period 1990-2010. At the year 2000, an economic disaster had occurred, and I would like to determine whether there it had a ...
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416 views

Fixed effects versus first difference in panel data

In panel data model, both fixed effects model and first difference remove unobserved heterogeneity. If this is the case, when which technique is more appropriate and under what circumstances?
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Categorical variable as independent variable [closed]

I am using the variable education level as a control variable and this variable consists of 7 education levels (1-7). Now I can't use it as it is converted in the data. My teacher has messaged me that ...
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Simple example of a Fixed vs. Random effects model

Wikipedia's page on Random effects models gives a simple illustrative example of a random effect occurring in a panel analysis amongst pupils' performance on schools. Wikipedia's page on Fixed effects ...
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133 views

Clustered standard errors and time dummies in panel data

Assume a simple linear regression model, I have $i$ firms and $t=17$ periods $$Y_{it}=\alpha + \beta_2 T_2 + \beta_3 T_3 + \cdots + \beta_{16} T_{16} + \gamma_i + \varepsilon_{it}$$ In this case, $t=...
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Random and fixed effects models in R for glm

i am quite confused about creating a fixed effects model. How exactly does the Fixed effects model differ from the basic model with fixed countrys, because up until now i thought that this model would ...
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1answer
339 views

Does a panel regression model make sense for my data?

This might be a bit of a newbish question, but I recently picked up a forecasting project at my job, and I'm trying to figure out whether it makes sense to run a panel regression like a Fixed Effects ...
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191 views

Linear probability model with fixed effects?

If I want to estimate a linear probability model with (region) fixed effects, is that the same as just running a fixed effects regression? Maybe I'm getting tripped up with the language and whether I ...
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Pooled OLS vs Fixed Effects regression

For my thesis, I'm currently comparing the effect of institutional ownership on the idiosyncratic volatility of stocks. My current approach has been to do a simple regression and including multiple ...
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Difference between fixed effects dummies and fixed effects estimator?

I started to read about panel regression models. However, I am a bit confused about the different model specifications in the fixed effects model: Does a fixed effects panel regression always mean ...
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1answer
651 views

Interpretation of Fixed Interaction Effects in a Linear Mixed Model

I have a linear mixed model for predicting speed of a street crossing by a pedestrian with the factors VS (vehicle speed), GAP (selected time gap size for crossing), the interaction factors VSxGAP and ...
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205 views

Difference in Differences with Multiple Time Periods and Multiple Treatment Periods

I'm working on a panel data difference in differences model where each unit (country) is observed every year. In any year, a country can be engaged in a war (treatment), a militarized interstate ...
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1answer
35 views

Are there any disadvantages to state*year fixed effects?

Suppose that my unit of treatment is the county, and that counties in multiple states receive the treatment and suppose that I have panel data. Should I always use state*year fixed effects to control ...
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Country fixed effect for panel multinomial logit model

I am suffering from a pretty complicated model, the panel multinomial logit model with country fixed effect. My problem is that I am not sure how to specify the model since the unobserved country ...
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How to perform bootstrapping to compare CI of mediation analysis in Python

I'd like to perform a mediation analysis in Python and have done the following so far. ...
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42 views

Performing a Mediation Analysis for Fixed Effects Model in Python

I asked the same question here, as it is a mix between a coding and a statistical question I want to perform a mediation analysis with a fixed effects model as base model in python. I know, that you ...
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10 views

regression and fixed effect

I added individual fixed effect into linear regression to measure the casual impact of X1 on Y, I used userid variable as a proxy, the user ids are from 1 to 50. The regression shows X1 has a positive ...
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135 views

Do demographic variables need to be standardized when population size is included as a covariate?

I am doing a fixed effects regression where the dependent variable is number of people in an treatment facility in a given state/year. We are also including a population size control variable. I am ...
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How to deal with treatment variable which is determined by the outcome variable

I have a categorical treatment variable, MessageType, that has 12 different values. The outcome variable, Crash, sometimes determines these values. So more crashes lead to certain types of messages, ...
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How to get first difference of count variable for poisson regression

Poisson regression using Panel data requires the dependent variable ($y_{it}$) to be a non-negative count variable. I need to take the first difference of the dependent variable to deal with reverse ...
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23k 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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101 views

The difference between DID and fixed effect model

It is said that the DID (difference-in-difference) is a special case of the fixed-effect model. However, in my understanding, they solve different problems: In the case of DID, there is an unobserved ...
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436 views

Fixed effects vs random effects when assumption of strict exogeneity holds

I have trouble understanding the following exercise: Assume a setting in which the assumption of strict exogeneity holds, but random effects estimation and fixed effects estimation give very ...
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16 views

Linear Mixed Models for Variance in Repeat Measurements

I am measuring blood pressure in patients and controls. Two measurements of blood pressure are taken on two different days (for a total of 4 measurements). I would like to be able determine what is ...
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Should I use fixed or random effects?

I have a healthcare data set with one (six meter walk test) and two predictors (baseline six meter walk test as a covariate, and days of treatment). We want to know if 6MWT improves over time (using ...
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13k views

Difference between fixed effects models in R (plm) and Stata (xtreg)

I'm trying to re-create an analysis done using Stata function xtreg (though I don't have the code) with ...
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Inter-rater agreement (raters >2) of non-random items

I ran a survey where participants (P) had to choose one category out of six (C1-C6) for each of five items. The data looks like this: ...
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50 views

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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1answer
51 views

The definition of a constant term in a fixed effects model

Is it considered necessary to include a constant term in the definition of a panel data model which. among other regressors, includes a variable representing fixed effects?
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Difference between two-way fixed effects and interaction of effects

I would like to gain some intuition on the differences between models using various fixed effects specifications. This question relates to this one by me: Three way fixed effects vs combining two of ...
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2answers
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Why post main effect being subsumed into the time fixed effects

In the DD equation, I have Treat indicator and Post indicator. The model also includes state fixed effects and year fixed effects. Is it necessary to omit Post variable (thus only Treat and Treat*Post)...
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1answer
279 views

Fixed effect and clustering with 3 dimensional data

I have a sample of banks. These vary across time, rating agency and across countries. UPDATE: I trying to capture the effect of a regulatory change (dummy variable, 0/1) on a banks credit rating. I ...
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Transformation of a fixed effect?

I'm working with a data set where I relate the response variable weight gain/loss (it goes from -110 g to 150 g) to multiple explanatory variables. It looks like this: lmer (weight.difference ~ A * B ...

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