English

A Note on Identification of Match Fixed Effects as Interpretable Unobserved Match Affinity

Econometrics 2024-08-22 v3

Abstract

We highlight that match fixed effects, represented by the coefficients of interaction terms involving dummy variables for two elements, lack identification without specific restrictions on parameters. Consequently, the coefficients typically reported as relative match fixed effects by statistical software are not interpretable. To address this, we establish normalization conditions that enable identification of match fixed effect parameters as interpretable indicators of unobserved match affinity, facilitating comparisons among observed matches. Using data from middle school students in the 2007 Trends in International Mathematics and Science Study (TIMSS), we highlight the distribution of comparable match fixed effects within a specific school.

Keywords

Cite

@article{arxiv.2406.18913,
  title  = {A Note on Identification of Match Fixed Effects as Interpretable Unobserved Match Affinity},
  author = {Suguru Otani and Tohya Sugano},
  journal= {arXiv preprint arXiv:2406.18913},
  year   = {2024}
}

Comments

6 pages, 4 page appendix

R2 v1 2026-06-28T17:20:49.990Z