Timeline for What is "panel-type specifications" more general than "two-way fixed effects"?
Current License: CC BY-SA 4.0
8 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Sep 16, 2021 at 10:15 | comment | added | Michael Gmeiner | The second equation in my answer does this. The coefficient, $\alpha_i$, differs for each individual, measuring an unit-specific time trend. | |
| Sep 16, 2021 at 10:05 | comment | added | Phil Nguyen | Can I ask for an example of adding a unit-specific trends if it is convenient? Thanks a heaps | |
| Sep 16, 2021 at 10:04 | vote | accept | Phil Nguyen | ||
| Sep 16, 2021 at 9:59 | comment | added | Michael Gmeiner | ""general time trend" would be perfect colinear with time fixed effect, is it what you mean then?" Yes. | |
| Sep 16, 2021 at 9:59 | comment | added | Michael Gmeiner | Lag variable is different than time trends. A lag variable might be as follows: $y_{it} = \beta_0 +\beta_1 x_{it} + \beta_2 Z_{it-1} +\gamma_i +\delta_t +u_{it} $Z$ is used generically. $Z$ could be a lagged $X$ variable, or instead a lagged outcome variable. There are issues with lagged outcome variables, and I'm guessing that's not relevant to your case. | |
| Sep 16, 2021 at 9:46 | comment | added | Phil Nguyen | "general time trend" would be perfect colinear with time fixed effect, is it what you mean then? Thanks | |
| Sep 16, 2021 at 9:44 | comment | added | Phil Nguyen | Thank @Micheal , can I ask an example of controlling for "unit-specific trends" is unit's lag variable? | |
| Sep 16, 2021 at 9:04 | history | answered | Michael Gmeiner | CC BY-SA 4.0 |