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Low-Rank Approximations of Nonseparable Panel Models

Iván Fernández-Val, Hugo Freeman, Martin Weidner

arXiv 23 Oct 2020 · Econometrics · publishedEconometrics Journal (2021) · 11 citations (OpenAlex)

arXiv:2010.12439 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We provide estimation methods for nonseparable panel models based on low-rank factor structure approximations. The factor structures are estimated by matrix-completion methods to deal with the computational challenges of principal component analysis in the presence of missing data. We show that the resulting estimators are consistent in large panels, but suffer from approximation and shrinkage biases. We correct these biases using matching and difference-in-differences approaches. Numerical examples and an empirical application to the effect of election day registration on voter turnout in the U.S. illustrate the properties and usefulness of our methods.

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appendix boundary found by appendix_titled_section at “Appendix A: Proofs of Results” · 68% 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
1Athey, S., M. Bayati, N. Doudchenko, G. Imbens, and K. Khosravi (2017) Matrix completion methods for causal panel data models1.00053100%
2Xu, Y (2017) Generalized synthetic control method: Causal inference with interactive fixed effects models1.00053100%
3Chernozhukov, V., I. Fernández-Val, J. Hahn, and W. Newey (2013) Average and quantile effects in nonseparable panel models0.81142100%
4Amjad, M., D. Shah, and D. Shen (2018) Robust synthetic control0.73732100%
5Bai, J. and S. Ng (2019) Rank regularized estimation of approximate factor models0.73732100%
6Cai, J.-F., E. J. Candès, and Z. Shen (2010) A singular value thresholding algorithm for matrix completion0.73732100%
7Ma, S., D. Goldfarb, and L. Chen (2011) Fixed point and bregman iterative methods for matrix rank minimization0.73732100%
8Lataa, R (2005) Some estimates of norms of random matrices0.6443267%
9Chamberlain, G (1982) Multivariate regression models for panel data0.64422100%
10Graham, B. S. and J. L. Powell (2012) Identification and estimation of average partial effects in ñirregularî correlated random coefficient panel data models0.64422100%

Showing the top 10 of 128 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
1Inferring Treatment Effects in Large Panels by Uncovering Latent Similarities1.00053
2Causal Matrix Completion0.64422
3Optimal Estimation of Large-Dimensional Nonlinear Factor Models0.64422
4Bootstrap Inference under General Two-way Clustering with Serially and Spatially Dependent Common Effects0.51122
5Nuclear Norm Regularized Estimation of Panel Regression Models0.40511
6Synthetic Blips: Generalizing Synthetic Controls for Dynamic Treatment Effects0.40511
7Strategyproof Decision-Making in Panel Data Settings and Beyond0.40511
8Tractable Estimation of Nonlinear Panels with Interactive Fixed Effects0.40511
9Estimation of Panel Data Models with Nonlinear Factor Structure$^$0.40511
10Inference on Linear Regressions with Two-Way Unobserved Heterogeneity0.40511