Regression modelEconometrics / time series
Panel Fixed Effects Model
The panel fixed effects (FE) model controls for all time-invariant, unit-specific unobserved heterogeneity by absorbing it into individual intercepts. By sweeping out unit means through the within transformation, FE yields unbiased estimates of the effect of time-varying regressors even when omitted unit-level confounders are correlated with those regressors.
Apply with EconMindSoonVideoSoon
Read the full method
Members only
Sign inSign in with a free account to read this section.
Sources
- Wooldridge, J. M. (2010). Econometric Analysis of Cross Section and Panel Data (2nd ed.). MIT Press. ISBN: 978-0262232586
- Baltagi, B. H. (2021). Econometric Analysis of Panel Data (6th ed.). Springer. ISBN: 978-3030534875
Related methods
Referenced by
Bayesian Dynamic Panel Data ModelBayesian Fixed Effects ModelDynamic Panel Data ModelFourier Fixed Effects ModelFourier Panel Data AnalysisNonlinear Fixed Effects ModelPanel Arellano-Bond GMMPanel ARMA modelPanel Dynamic Panel Data ModelPanel GARCH modelPanel GLSPanel Hausman TestPanel Quantile-on-Quantile RegressionPanel SVAR modelPanel System GMMRobust Arellano-Bond GMMRobust Difference GMMRobust Dynamic Panel Data ModelRobust OLSRobust Panel Data AnalysisStructural Break Fixed Effects Model