Regression model

Fixed Effects Panel Model

The fixed effects panel model estimates relationships in panel data (many units observed over time) by exploiting only the within-unit variation, so that unobserved time-invariant heterogeneity is controlled away. It is the central within estimator developed in Baltagi's Econometric Analysis of Panel Data (2005), and the choice between it and the random effects model is settled by the Hausman (1978) test.

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Sources

  1. Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46(6), 1251–1271. DOI: 10.2307/1913827
  2. Baltagi, B. H. (2005). Econometric Analysis of Panel Data (3rd ed.). Wiley. ISBN: 978-0470014561

Related methods

ScholarGateFixed Effects Panel Model (Fixed Effects Panel Data Model (Within Estimator)). Retrieved 2026-06-04 from https://scholargate.app/tr/econometrics/fixed-effects-panel