# 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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### Panel regressions with an interaction term between a time dummy variable and a time invariant variable

I have estimated the coefficients of the following equation, using the fixed-effect model: $Y_{it}=\alpha _i+ \rho _t + \beta _1 X_{it}+\beta _2 C_i*D_t+\epsilon_{it}$ I have observations from 1980 ...
756 views

### Should I cluster my standard errors even when using a multilevel model?

I've been reading up on multilevel modeling, and have noticed that many sources seem to frame it as an "alternative" to using cluster-robust standard errors. My question: Are they really alternatives?...
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### Average Marginal Effects from Chamberlain-Mundlak Device CRE Probit

I am trying to calculate the average marginal effects for the Chamberlain-Mundlak Correlated Random Effects probit model. The ultimate goal is to get something equivalent to the AME from the fixed ...
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### Difference-in-difference in panel data

Under which conditions should we expect the difference-in-difference estimate to be equal to the equivalent panel data model? Strictly speaking, whenever we have a experiment that offers a well ...
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### Fixed Effects vs Lagged DV vs. First Differences Regression

What are the differences between using unit fixed effects, unit fixed effects and time fixed effects, lagged DV, or first differences to analyze a time series with 4-5 time periods and 35-50 units per ...
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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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### Unbalanced panel data: Fixed effects?

I have an unbalanced panel dataset with N=10 firms and T=61 days. Because one variable had values outside the theoretical range I had to constrain my dataset, which left me with only 239 observations. ...
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### Fitting panel data with both variable and constant coefficients using R

I'm working with panel data and want to fit a model of the form: $y_{ij} = \alpha_{i} + \beta_{1i} x_{1ij} + \beta_{2i} x_{2ij} + \beta_{3} treatment_{ij} + \epsilon_{ij}$ The data consist of (...
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### Fixed-effects or mixed-effects models to population based data

There are various definitions of fixed and random effects in linear mixed-effects models in the statistics literature, and even in the fixed-effects models from econometrics. The data I have now ...
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### Panel Data: In a fixed effects model, does auto-correlation introduce bias?

Given a panel of countries over time, a fixed effects estimator makes sense to control for country-specific effects. My intuition tells me that if the dependent variable is correlated with lags of the ...
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### Outliers and Influential observations in fixed effects regression

I am running a fixed effects regression with a very unbalanced panel data. There are a lot of large residuals. For half of my observations, the residuals are large. However, I do not want to simply ...
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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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### 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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### What are the advantages of a random effects model versus a pooled OLS regression with cluster–robust standard errors?

Both models allow for explanatory variables that are time-invariant. I had thought that the advantage of a random effects model might be related to the fact that random effects models mitigate ...
365 views

### Is it possible to fit a quantile regression fixed effects model on a repeated measures, panel data, with a nested structure?

In the rqpd package manual it is demonstrated how to fit a fixed effects model on a repeated measures data structure. I am looking for ways to extend this to a repeated measures nested structure, i.e. ...
568 views

### How can I control for time-varying unobserved heterogeneity with panel data?

I'm just beginning to learn econometrics, and I just learned about the fixed effects estimator, and the first-difference estimator. It's quite straightforward that those techniques allow me to control ...
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### Using several cross-sectional regressions (for different years) vs. a single fixed-effects panel model

I have what I think is a relatively simple question about the merits of performing a single panel regression with fixed effects as opposed to individual yearly cross-sectional regressions with the ...
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### What if first differencing and individual dummy variables produce different estimates?

I am replicating a paper where the authors use first-differencing to eliminate individual fixed effects. In my replication I estimated the model (using the exact same data) using individual dummy ...
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### Test fixed effects for joint significance in R

Just as in this post I'm looking to test for the joint significance of the fixed effects in a model. Unlike the post I referred to, I'm looking to test each fixed effect individually. I have used a ...
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### Intuition behind fixed effects

Im trying to explain the intuition behind fixed effects to a group of people with no background in (formal) regression analysis. Explaining the intuition behind Diff-in-Diff estimation of the impact ...
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### Bins and Year Fixed Effects

I am trying to understand the difference between two regression models. Before more complex models are run (ie. quantile) I split an key independent variable into bins to see if the relationship is ...
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### Fixed parameter estimates of parent factors in a nested design

Summary: What is happening with parameter estimates of factors that are the 'parents' of nested factors? Data: My analysis involves testing the effect of different parameter settings for automatic ...
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### Marginal effect calculation after logistic regression with panel dataset using R

I would like to perform a logit regression with a panel dataset, I know that the pglm package does the job, however, does anyone know if there is a standard package in R that allows me to calculate ...
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### How to interpret results after including lags in panel data regression (fixed effects)?

I would like to ask a question about lags I've included however I believe it's better if I first give you some more insight information about my topic. My hypothesis is ''the positive sentiment ...
240 views

### Convergence problem when adjusting for the effect of a lot of centres

Let us say I would like to adjust for centre effects in the analysis of data from a multicentre clinical trial. In the fixed effects approach one simply chooses one centre as reference and includes a ...
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### Do specification differences make a difference in difference-in-differences?

My question relates to the following post: How do I interpret a "difference-in-differences" model with continuous treatment? I am reproducing an equation from Acemoglu, Autor and Lyle (...
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### Fixed or Random model: hausman, xtoverid, Mundlak approach all giving different answers in stata

I have panel data. When I use the Hausman test to decide on a fixed vs random model, I get an note saying that: "the rank of the differenced variance matrix (8) does not equal the number of ...