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Linear Multidimensional Regression with Interactive Fixed-Effects

Hugo Freeman

arXiv 23 Sep 2022 · Econometrics · 5 citations (OpenAlex)

arXiv:2209.11691 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper studies a linear model for multidimensional panel data of three or more dimensions with unobserved interactive fixed-effects. The main estimator uses double debias methods, and requires two preliminary steps. First, the model is embedded within a two-dimensional panel framework where factor model methods in Bai (2009) lead to consistent, but slowly converging, estimates. The second step develops a weighted-within transformation that is robust to multidimensional interactive fixed-effects and achieves the parametric rate of consistency. This is combined with a double debias procedure for asymptotically normal estimates. The methods are implemented to estimate the demand elasticity for beer.

Citation extraction

29
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73
in-text mentions
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distinct cited
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13,398
main-text words

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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
1Moon, Hyungsik Roger and Weidner, Martin (2015) Linear Regression for Panel With Unknown Number of Factors as Interactive Fixed Effects1.00094100%
2Jushan Bai and Serena Ng Determining the Number of Factors in Approximate Factor Models1.00053100%
3Bai, Jushan (2009) Panel data models with interactive fixed effects0.95222686%
4Freeman, Hugo and Weidner, Martin (2023) Linear panel regressions with two-way unobserved heterogeneity self0.9285380%
5M. Hashem Pesaran Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure0.64422100%
6De Silva, Vin and Lim, Lek-Heng (2008) Tensor rank and the ill-posedness of the best low-rank approximation problem0.64422100%
7Hausman, Jerry and Leonard, Gregory and Zona, J Douglas (1994) Competitive analysis with differenciated products0.64422100%
8Berry, Steven T and Haile, Philip A (2021) Foundations of demand estimation0.51121100%
9Ahn, Seung C and Horenstein, Alex R (2013) Eigenvalue ratio test for the number of factors0.40511100%
10Babii, Andrii and Ghysels, Eric and Pan, Junsu (2022) Tensor Principal Component Analysis0.40511100%

Showing the top 10 of 29 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
1Inference after discretizing time-varying unobserved heterogeneity0.40511
2(Debiased) Inference for Fixed Effects Estimators with Three-Dimensional Panel and Network Data0.40511
3Inference on Linear Regressions with Two-Way Unobserved Heterogeneity0.40511