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Fixed-Effect Regressions on Network Data

Koen Jochmans, Martin Weidner

arXiv 4 Aug 2016 · Statistics — Methodology · publishedEconometrica (2019) · 38 citations (OpenAlex)

arXiv:1608.01532 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper considers inference on fixed effects in a linear regression model estimated from network data. An important special case of our setup is the two-way regression model. This is a workhorse technique in the analysis of matched data sets, such as employer-employee or student-teacher panel data. We formalize how the structure of the network affects the accuracy with which the fixed effects can be estimated. This allows us to derive sufficient conditions on the network for consistent estimation and asymptotically-valid inference to be possible. Estimation of moments is also considered. We allow for general networks and our setup covers both the dense and sparse case. We provide numerical results for the estimation of teacher value-added models and regressions with occupational dummies.

Citation extraction

29
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Andrews, M. J., L. Gill, T. Schank, and R. Upward (2008) High wage workers and low wage firms: Negative assortative matching or limited mobility bias0.84333100%
2Card, D., J. Heining, and P. Kline (2013) Workplace heterogeneity and the rise of West German wage inequality0.84333100%
3Finkelstein, A., M. Gentzkow, and H. Williams (2016) Sources of geographic variation in health care: Evidence from patient migration0.84333100%
4Abowd, J. M., F. Kramarz, and D. N. Margolis (1999) High wage workers and high wage firms0.64422100%
5Andrews, M. J., L. Gill, T. Schank, and R. Upward (2012) High wage workers match with high wage firms: Clear evidence of the effects of limited mobility bias0.64422100%
6Chung, F. R. K (1997) Spectral Graph Theory0.64422100%
7Erdos, P. and A. Rényi (1959) On random graphs0.64422100%
8Jackson, C. K., J. E. Rockoff, and D. O. Staiger (2014) Teacher effects and teacher related policies0.64422100%
9Rockoff, J. E (2004) The impact of individual teachers on student achievement: Evidence from panel data0.64422100%
10Verdier, V (2018) Estimation and inference for linear models with two-way unobserved heterogeneity and sparsely matched data0.64422100%

Showing the top 10 of 79 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
12cm Optimal Estimation of Two-Way Effects under Limited Mobility0.94163
2Identification, Estimation, and Inference in Two-Sided Interaction Models0.84333
3Leave-out estimation of variance components0.73733
41 Linear Regression with Centrality Measures0.64422
5Estimating Heterogeneous Effects: Applications to Labor Economics0.64422
6Branching Fixed Effects: A Proposal for Communicating Uncertainty0.64422
7Batched Adaptive Network Formation0.51121
8Network Cluster-Robust Inference0.40511
9A NEYMAN-ORTHOGONALIZATION APPROACH TO THE INCIDENTAL PARAMETER PROBLEM0.40511
10Team Networks with Partially Observed Links0.40511