Kevin Dano, Bo E. Honoré, Martin Weidner
arXiv 15 Aug 2025 · Econometrics
arXiv:2508.11556 · PDF · Extracted main text
This paper systematically analyzes and reviews identification strategies for binary choice logit models with fixed effects in panel and network data settings. We examine both static and dynamic models with general fixed-effect structures, including individual effects, time trends, and two-way or dyadic effects. A key challenge is the incidental parameter problem, which arises from the increasing number of fixed effects as the sample size grows. We explore two main strategies for eliminating nuisance parameters: conditional likelihood methods, which remove fixed effects by conditioning on sufficient statistics, and moment-based methods, which derive fixed-effect-free moment conditions. We demonstrate how these approaches apply to a variety of models, summarizing key findings from the literature while also presenting new examples and new results.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Honoré, B. E. and M. Weidner (2024) Moment conditions for dynamic panel logit models with fixed effects self | 1.000 | 5 | 3 | 100% |
| 2 | Dano, K (2023) Transition probabilities and moment restrictions in dynamic fixed effects logit models self | 0.928 | 5 | 3 | 80% |
| 3 | Graham, B. S (2016) Homophily and transitivity in dynamic network formation | 0.874 | 7 | 2 | 100% |
| 4 | Bonhomme, S (2012) Functional differencing | 0.874 | 5 | 2 | 100% |
| 5 | Graham, B. S (2017) An econometric model of network formation with degree heterogeneity | 0.811 | 4 | 2 | 100% |
| 6 | Kitazawa, Y (2022) Transformations and moment conditions for dynamic fixed effects logit models | 0.737 | 3 | 2 | 100% |
| 7 | Rasch, G (1960) Studies in mathematical psychology: I. Probabilistic models for some intelligence and attainment tests | 0.737 | 3 | 2 | 100% |
| Chamberlain | unmatched citation key Chamberlain | 0.693 | 6 | 1 | 100% |
| 9 | Chamberlain, G. (1980, January) (1980) Analysis of Covariance with Qualitative Data | 0.644 | 2 | 2 | 100% |
| 10 | Charbonneau, K. B (2017) Multiple fixed effects in binary response panel data models | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 108 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.