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This paper develops bootstrap methods for practical statistical inference in panel data quantile regression models with fixed effects. We consider random-weighted bootstrap resampling and formally establish its validity for asymptotic…

Econometrics · Economics 2021-11-08 Antonio F. Galvao , Thomas Parker , Zhijie Xiao

The maximum likelihood estimator in nonlinear panel data models with interactive fixed effects is biased. Several bias correction methods, such as analytical and jackknife approaches, have been proposed to enable valid inference. This paper…

Econometrics · Economics 2026-04-30 Haoyuan Xu , Wei Miao , Geert Dhaene , Jad Beyhum

In this paper, we propose a varying coefficient panel data model with unobservable multiple interactive fixed effects that are correlated with the regressors. We approximate each coefficient function by B-spline, and propose a robust…

Methodology · Statistics 2018-03-08 Sanying Feng , Gaorong Li , Heng Peng , Tiejun Tong

We consider identification, inference and validation of linear panel data models when both factors and factor loadings are accounted for by a nonparametric function. This general specification encompasses rather popular models such as the…

Econometrics · Economics 2025-06-13 Juan M. Rodriguez-Poo , Alexandra Soberon , Stefan Sperlich

We develop new econometric methods for estimation and inference in high-dimensional panel data models with interactive fixed effects. Our approach can be regarded as a non-trivial extension of the very popular common correlated effects…

Econometrics · Economics 2025-08-11 Maximilian Ruecker , Michael Vogt , Oliver Linton , Christopher Walsh

Panel data models with unobserved heterogeneity in the form of interactive effects standardly assume that the time effects -- or ``common factors'' -- enter linearly. This assumption is restrictive because it concerns an unobserved…

Econometrics · Economics 2026-05-29 Christina Maschmann , Joakim Westerlund

This paper addresses inference in large panel data models in the presence of both cross-sectional and temporal dependence of unknown form. We are interested in making inferences that do not rely on the choice of any smoothing parameter as…

Econometrics · Economics 2020-06-26 J. Hidalgo , M. Schafgans

This paper focuses on estimating the coefficients and average partial effects of observed regressors in nonlinear panel data models with interactive fixed effects, using the common correlated effects (CCE) framework. The proposed two-step…

Econometrics · Economics 2023-04-27 Liang Chen , Minyuan Zhang

Fixed effect estimators of nonlinear panel data models suffer from the incidental parameter problem. This leads to two undesirable consequences in applied research: (1) point estimates are subject to large biases, and (2) confidence…

Econometrics · Economics 2022-04-18 Shuowen Chen

We derive the asymptotic theory of Bai (2009)'s interactive fixed effects estimator for unbalanced panels in which the source of attrition is conditionally random. For inference, we propose a method of alternating projections algorithm…

Econometrics · Economics 2026-05-19 Daniel Czarnowske , Amrei Stammann

We consider estimation and inference for a regression coefficient in panels with interactive fixed effects (i.e., with a factor structure). We demonstrate that existing estimators and confidence intervals (CIs) can be heavily biased and…

Econometrics · Economics 2025-05-13 Timothy B. Armstrong , Martin Weidner , Andrei Zeleneev

We propose statistical inferential procedures for panel data models with interactive fixed effects in a kernel ridge regression framework.Compared with traditional sieve methods, our method is automatic in the sense that it does not require…

Statistics Theory · Mathematics 2017-03-10 Shunan Zhao , Ruiqi Liu , Zuofeng Shang

This paper introduces a new fixed effects estimator for linear panel data models with clustered time patterns of unobserved heterogeneity. The method avoids non-convex and combinatorial optimization by combining a preliminary consistent…

Econometrics · Economics 2025-04-21 Martin Mugnier

This paper considers a model with general regressors and unobservable factors. An estimator based on iterated principal components is proposed, which is shown to be not only asymptotically normal and oracle efficient, but under certain…

Econometrics · Economics 2025-04-23 Bin Peng , Liangjun Su , Joakim Westerlund , Yanrong Yang

This paper considers linear panel data models where the dependence of the regressors and the unobservables is modelled through a factor structure. The asymptotic setting is such that the number of time periods and the sample size both go to…

Statistics Theory · Mathematics 2020-11-25 Jad Beyhum , Eric Gautier

We study linear panel regression models in which the unobserved error term is an unknown smooth function of two-way unobserved fixed effects. In standard additive or interactive fixed effect models the individual specific and time specific…

Econometrics · Economics 2022-08-15 Hugo Freeman , Martin Weidner

We consider inference about coefficients on a small number of variables of interest in a linear panel data model with additive unobserved individual and time specific effects and a large number of additional time-varying confounding…

Methodology · Statistics 2017-09-29 Christian Hansen , Yuan Liao

In this paper we study the least squares (LS) estimator in a linear panel regression model with unknown number of factors appearing as interactive fixed effects. Assuming that the number of factors used in estimation is larger than the true…

Econometrics · Economics 2026-05-04 Hyungsik Roger Moon , Martin Weidner

Suppose that we wish to estimate a finite-dimensional summary of one or more function-valued features of an underlying data-generating mechanism under a nonparametric model. One approach to estimation is by plugging in flexible estimates of…

Methodology · Statistics 2020-08-28 Hongxiang Qiu , Alex Luedtke , Marco Carone

We study the interactive effects (IE) model as an extension of the conventional additive effects (AE) model. For the AE model, the fixed effects estimator can be obtained by applying least squares to a regression that adds a linear…

Econometrics · Economics 2024-10-17 Robert F. Phillips , Benjamin D. Williams
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