Questions tagged [fixed-effects]
The fixed-effects tag has no usage guidance.
33
questions
3
votes
1answer
45 views
How to interpret fixed effects?
I want to interpret the output of a fixed effects regression and need help with interpreting the country-fixed effects.
The regression is the following:
...
0
votes
0answers
27 views
Could a time series be a pooled OLS?
Hello to everyone on the forum,
I am currently working with intraday electricity price data. In the electricity market each hour is considered as a different product, because the demand and production ...
1
vote
0answers
13 views
Normalisations in the wage equation with firm-worker fixed effects
where
$$
Y_{it}=\alpha_i+\psi_{j(i,t)}+\epsilon_{it}
$$
for $i=1,...,N$ (individual index), $t=1,...,T$ (time index), $j=1,...,J$ (firm index), and $j(i,t)$ is the firm employing worker $i$ at time $t$...
3
votes
0answers
108 views
Identification of a “modified” wage equation with firm-worker fixed effects
Consider the traditional AKM model
where
$$
Y_{it}=\alpha_i+\psi_{j(i,t)}+\epsilon_{it}
$$
for $i=1,...,N$ (individual index), $t=1,...,T$ (time index), $j=1,...,J$ (firm index), and $j(i,t)$ is the ...
3
votes
1answer
111 views
Identification of firm-worker fixed effect wage equation
Consider the traditional AKM model
where
$$
Y_{it}=X_{it}\beta+\psi_{j(i,t)}+\epsilon_{it}
$$
for $i=1,...,N$ (individual index), $t=1,...,T$ (time index), $j=1,...,J$ (firm index), and $j(i,t)$ is ...
0
votes
0answers
24 views
How to calculate semi elasticity in fixed effect model with interaction
Given the model specification
$$Y_{it} = \beta_1 X_{it} + \beta_2 D*X_{it} + FE_{i} + e_{it}$$
The above model specification is a Fixed effect model with interaction term ($X_{it}$ interacting with D- ...
0
votes
0answers
13 views
Coefficient omitted due to time fixed effect and multi-collinearity
I am working on a research paper (my first one) where I am dealing with company level unbalanced panel data. There are broadly two types of control variables in the study - a) firm level control ...
0
votes
0answers
13 views
Interaction term between lagged and non lagged variable Fixed/Random effect model
I am analyzing a panel dataset. I am wondering if I could use an interaction of a lagged variable ( one time step behind) and a non lagged variable ( both continuos indipendent variables) and still ...
0
votes
1answer
105 views
R's felm() fixed effects vs. factor() within lm()
I am wondering why using felm's fixed effect option versus using the factor() function is different? I was under the impression they were one in the same?
I am running a panel regression where i is ...
0
votes
1answer
62 views
Fixed Effects Model Interpretation
$$\ln(\text{pay})_{itj}= \alpha_{ij} + \beta\ln(\text{performance})_{jt} + \gamma X_{ijt} + T_t + ε_{ijt}$$
This fixed effects model was used to investigate the link between pay-performance throughout ...
0
votes
1answer
34 views
Age effect when controling for individual fixed effects and time fixed effects
I have a individual-by-year panel. Although age is varying within an individual, its variation is fully absorbed when I include individual fixed effects and time fixed effects. This is because each ...
3
votes
1answer
77 views
How to choose between fixed and random effects using economic intuition?
In class, our professor said that when it comes to deciding between estimating panel regression with fixed and random effects we should not just blindly follow the Hausman test, but also think about ...
1
vote
1answer
115 views
Log log regression with fixed effects and cross elasticity of demand
I have a time series of units sold, and price. I'd like to calculate elasticity of demand wrt to price and a few other variables, some of them are fixed effects.
...
0
votes
0answers
17 views
Impactful fixed-effect identification with open data
For a replication project, I am looking for impactful (and ideally somewhat recent) papers that use fixed-effects as their main identification strategy and make their data publicly available.
By ...
0
votes
0answers
38 views
How can I add fixed-effect constant variable in Stata?
I want to test a model like this:
alpha denotes full set of country fixed effects and delta denotes full set of year fixed effects in the article in which this model is used.
My model is similar to ...
1
vote
1answer
248 views
Linear Probability Model Instead of Logit in Fixed Effects Regression
In our panel data analysis we estimated a fixed effects linear probability model (LPM) instead of a fixed effects logit regression because our sample size was quite small (600 individuals) and the ...
0
votes
1answer
40 views
How to determine correct fixed effects in linear regression model using unbalanced paneldata
I am currently working on a research project regarding the introduction of mandatory earnings guidance regulation in multiple countries within a time span of 10 years (staggered adoption). As I can ...
1
vote
1answer
57 views
Fixed-Effects on individual level with explanatory variable on state level
I am planing a panel data analysis evaluating a continuous policy intervention. I do have individual level data. I would like to account for individual fixed-effects. However, the explanatory variable ...
0
votes
1answer
219 views
Fixed Effects Estimation and Inconsistency
Consider estimation of the following population regression function:
$G{Y_{it}} = {\beta _0} + {\beta _1}IN{F_{it}} + {\beta _2}DE{M_i} + {\beta _3}POI{L_t} + {\varepsilon _{it}}$
Where:
$GY_{it}$ = ...
2
votes
0answers
23 views
Publishing fixed and random effects in one model
I am a health economist working with panel data for a paper I am working on, I use Hausman tests to determine if I should use fixed or random effects estimators in my analysis. For some outcomes ...
1
vote
0answers
24 views
Group-level random effect correlated with within-group independent variable
Dear StackExchange community,
Question:
According to, e.g., Wikipedia, random effects models assume "that the individual specific effects are uncorrelated with the independent variables."
I ...
3
votes
0answers
22 views
Random effect Vs Fixed effect with the 10 CAN provs as cross sections
Im working on a model examining the effect of minimum wages on employment over the 10 provinces using a panel data set. I have used the Hausman test to decide to use RE or FE, in which it recommended ...
2
votes
0answers
28 views
Panel data: When can I used random effects instead of fixed effects? Are control variables necessary?
I have panel data for individuals in an economy that experienced fluctuations in employment levels. I also have some health information for these individuals, BMI, self-rated health etc.,
My ...
2
votes
0answers
168 views
Fixed vs Random effects in panel data
I am an economist interested in looking at panel data on mothers, their husbands and their grandparents to determine the effect of the economic shock of the recession on their self-reported health ...
2
votes
1answer
257 views
Count panel models for endogenous regressors
I have a count variable as the dependent variable and several continuous regressors on the RHS. The dependent variable and some regressors are supposed to be endogenous to unobserved factors. I have a ...
2
votes
3answers
123 views
A question about Fixed effects estimation
I have a fixed effects model as follows:
$Y = x_1, x_2, x_3$, (fixed effect), (error term)
Is there any way I can check whether Cov($x_1$, (fixed effect)) is larger or smaller than 0?
The panel ...
2
votes
2answers
172 views
Year effects inconsistent between random effects and fixed effects
I am running a panel data estimation, where I am including year effects. My goal is to see if there is a time trend in the data, after controlling for other factors.
Using random effects, I find the ...
0
votes
1answer
420 views
using LOG in a econometric model
I am a beginner at econometrics and I have to build a model explaining scholing (as dependent variable) by migration (independent variable) and a couple of covariables. I'm going to use fixed effects ...
2
votes
0answers
106 views
Accounting for Fixed Effects
I am an undergraduate student working on environmental economics research. The econometric specification I am using is the following:
ln(Per.Capita.Dollars) = ln(Per.Capita.Dollars.lag) + Average....
3
votes
3answers
358 views
Intuition behind fixed effects estimator
I understand that the fixed effects estimator in a panel model (say, individuals, $i$ across years, $t$) can be understood either as a including a dummy for each $i$ or running OLS on the time demean-...
2
votes
1answer
242 views
Fixed effects, first differences interpretation
I am working with a fixed effects model to estimate the effect of enterprise zones on unemployment claims.
(1) $log(uclms_{it}) = \theta_t + \beta_1 ez_{it} + c_i + \epsilon_{it} $ where $\theta_t$ ...
10
votes
0answers
438 views
How can I test for autoregressive residual terms in a fixed effects panel Poisson model?
I have panel data for counts of new firms in different regions for six years. I am estimating a static poisson regression with multiplicative fixed effects$^*$; I have also tried to estimate a dynamic ...
2
votes
1answer
72 views
Fixed effects in treatment model
Hello in a simple treatment model
$$y=\beta_0+\beta_1w+e$$
where $w$ is unity for treatment by group. Should you add dummies for the groups to control for differences. I read somewhere that you ...
