Ch. D Fixed Effects, First Differences, Random Effects. Comparison of panel models (conclusion)
7 janeiro 2025, 10:00 • Hugo Castro Silva
Lecture was moved up to allow for coordination of lab shifts before the final test.
Fixed effects vs. First differences
- both are unbiased under similar assumptions
- choice falls on presence of serial correlation
Unbalanced panels
- potential Issues and sources
Random Effects
- intuition
- assumptions
- use cases
- estimation
- comparison against FE and POLS
Comparison of POLS, RE, FD, FE
Applying panel methods to other data structures
- revisiting the idea of fixed effects as group dummies