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Individual and Time Effects in Nonlinear Panel Models with Large N, T

2013/11/30 by Ivan Fernandez-Val, Martin Weidner
Mathematics · Economics, Econometrics and Finance · #stat.ME #econ.EM #msc:62

paper · pdf

published as Journal of Econometrics, Volume 192, Issue 1, May 2016, Pages 291-312 · 84 pages, 10 tables, includes supplementary appendix; Relative to the published version we corrected some expressions in Theorem 4.2 here

arxiv created 2018/12/18 · arxiv updated 2018/12/19

Abstract

We derive fixed effects estimators of parameters and average partial effects in (possibly dynamic) nonlinear panel data models with individual and time effects. They cover logit, probit, ordered probit, Poisson and Tobit models that are important for many empirical applications in micro and macroeconomics. Our estimators use analytical and jackknife bias corrections to deal with the incidental parameter problem, and are asymptotically unbiased under asymptotic sequences where N/T converges to a constant. We develop inference methods and show that they perform well in numerical examples.

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