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probitfe and logitfe: Bias corrections for probit and logit models with two-way fixed effects

Mario Cruz-Gonzalez, Ivan Fernandez-Val, Martin Weidner

arXiv 25 Oct 2016 · Statistics — Methodology · publishedThe Stata Journal Promoting communications on statistics and Stata (2017) · 78 citations (OpenAlex)

arXiv:1610.07714 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We present the Stata commands probitfe and logitfe, which estimate probit and logit panel data models with individual and/or time unobserved effects. Fixed effect panel data methods that estimate the unobserved effects can be severely biased because of the incidental parameter problem (Neyman and Scott, 1948). We tackle this problem by using the analytical and jackknife bias corrections derived in Fernandez-Val and Weidner (2016) for panels where the two dimensions ($N$ and $T$) are moderately large. We illustrate the commands with an empirical application to international trade and a Monte Carlo simulation calibrated to this application.

Citation extraction

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appendix boundary found by appendix_titled_section at “Appendix” · 77% of the source is main text. Read the extracted text to check this.

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
1Fernández-Val, I., and M. Weidner (2016) Individual and time effects in nonlinear panel models with large $N$, $T$0.96911691%
2Arellano, M., and J. Hahn (2007) Understanding bias in nonlinear panel models: Some recent developments0.64422100%
3Neyman, J., and E. Scott (1948) Consistent estimates based on partially consistent observations0.64422100%
4Helpman, E., M. Melitz, and Y. Rubinstein (2008) Estimating Trade Flows: Trading Partners and Trading Volumes0.58531100%
5Dhaene, G., and K. Jochmans (2015) Split-panel jackknife estimation of fixed-effect models0.51121100%
6Hahn, J., and W. Newey (2004) Jackknife and analytical bias reduction for nonlinear panel models0.51121100%
7Anderson, J. E., and E. van Wincoop (2003) Gravity with Gravitas: A Solution to the Border Puzzle0.40511100%
8Andersen, E. B (1973) Conditional inference and models for measuring, vol. 50.40511100%
9Chamberlain, G (1984) Panel Data, Handbook of Econometrics0.40511100%
10Fernández-Val, I (2009) Fixed effects estimation of structural parameters and marginal effects in panel probit models0.40511100%

Showing the top 10 of 11 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
1Network and Panel Quantile Effects Via Distribution Regression0.84333