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Bootstrap inference for fixed-effect models

Ayden Higgins, Koen Jochmans

arXiv 26 Jan 2022 · Econometrics · publishedEconometrica (2024) · 8 citations (OpenAlex)

arXiv:2201.11156 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The maximum-likelihood estimator of nonlinear panel data models with fixed effects is consistent but asymptotically-biased under rectangular-array asymptotics. The literature has thus far concentrated its effort on devising methods to correct the maximum-likelihood estimator for its bias as a means to salvage standard inferential procedures. Instead, we show that the parametric bootstrap replicates the distribution of the (uncorrected) maximum-likelihood estimator in large samples. This justifies the use of confidence sets constructed via standard bootstrap percentile methods. No adjustment for the presence of bias needs to be made.

Citation extraction

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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
1Hahn, J. and G. Kuersteiner (2011) Bias reduction for dynamic nonlinear panel models with fixed effects0.8746567%
2Kim, M. S. and Y. Sun (2016) Bootstrap and $k$-step bootstrap bias corrections for the fixed effects estimator in nonlinear panel data models0.8307357%
3Hahn, J. and W. K. Newey (2004) Jackknife and analytical bias reduction for nonlinear panel models0.81142100%
4Neyman, J. and E. L. Scott (1948) Consistent estimates based on partially consistent observations0.73732100%
5Chamberlain, G (1984) Panel data0.64422100%
6Dhaene, G. and K. Jochmans (2015) Split-panel jackknife estimation of fixed-effect models0.64422100%
7Andrews, D. W. K (2005) Higher-order improvements of the parametric bootstrap for Markov processes0.5114225%
8Arellano, M. and J. Hahn (2006) A likelihood-based approximate solution to the incidental parameter problem in dynamic nonlinear models with multiple effects0.40511100%
9Arellano, M. and J. Hahn (2007) Understanding bias in nonlinear panel models: Some recent developments0.40511100%
10Chamberlain, G (1980) Analysis of covariance with qualitative data0.40511100%

Showing the top 10 of 19 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
1Bootstrap Inference in Nonlinear Panel Data Models with Interactive Fixed Effects0.953154
2Social Interactions Models with Latent Structures0.73743
3Debiased Inference for Dynamic Nonlinear Panels with Multi-dimensional Heterogeneities0.64422
4INFERENCE IN DYNAMIC MODELS FOR PANEL DATA USING THE MOVING BLOCK BOOTSTRAP0.51121
50.5cmLow-Rank Estimation of Nonlinear Panel Data Models0.51121
6Debiased Fixed Effects Estimation of Binary Logit Models with Three-Dimensional Panel Data0.40511
7Binary choice logit models with general fixed effects for panel and network data0.40511
8(Debiased) Inference for Fixed Effects Estimators with Three-Dimensional Panel and Network Data0.40511
9Bias-Reduced Estimation of Finite Mixtures : An Application to Latent Group Structures in Panel Data0.40511
10Jackknife Inference for Fixed Effects Models0.40511