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1 vote

Lags in the context of panel data

Usually, would one lag the independent variable? If you are dealing with panel time series you will almost always want to include lags (even alongside contemporaneous variable) to explicitly model ...
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1 vote

Fixed effects vs first difference

Although this conversation is already a bit dated, I want to add a clarification for anyone reading this: FE and FD both effectively use the same amount of information. It can even be shown that a FD-...
2 votes

When should I NOT control for unit-fixed effects?

It is always a good default to include individual fixed effects. If you believe that omitting the individual fixed effect would not induce bias, then you can perform random effects estimation and ...

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