arXiv 7 Jan 2026 · Econometrics
arXiv:2601.04101 · PDF · DOI · OpenAlex · Extracted main text
We study a ridge estimator for the high-dimensional two-way fixed effect regression model with a sparse bipartite network. We develop concentration inequalities showing that when the ridge parameters increase as the log of the network size, the bias, and the variance-covariance matrix of the vector of estimated fixed effects converge to deterministic equivalents that depend only on the expected network. We provide simulations and an application using administrative data on wages for worker-firm matches.
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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 | Qin, Tai and Karl Rohe (2013) Regularized Spectral Clustering under the Degree-Corrected Stochastic Blockmodel, in | 1.000 | 5 | 3 | 100% |
| 2 | Kline, Patrick, Raffaele Saggio, and Mikkel Soelvsten (2020) Leave-Out Estimation of Variance Component | 0.811 | 4 | 2 | 100% |
| 3 | Azkarate-Askasua, Miren and Miguel Zerecero (2022) Correcting Small Sample Bias in Linear Models With Many Covariates, Crc tr 224 discussion paper series, University of Bonn and U… | 0.737 | 3 | 2 | 100% |
| 4 | Chung, Fan and Mary Radcliffe (2011) On the Spectra of General Random Graphs | 0.737 | 3 | 2 | 100% |
| 5 | Larremore, Daniel B., Aaron Clauset, and Abigail Z. Jacobs (2014) Efficiently inferring community structure in bipartite networks | 0.737 | 3 | 2 | 100% |
| 6 | Abowd, John M., Francis Kramarz, and David N. Margolis (1999) High Wage Workers and High Wage Firms | 0.644 | 2 | 2 | 100% |
| 7 | Andrews, M. J., L. Gill, T. Schank, and R. Upward (2008) High wage workers and low wage firms: negative assortative matching or limited mobility bias? | 0.644 | 2 | 2 | 100% |
| 8 | Chaudhuri, Kamalika, Fan Chung Graham, and Alexander Tsiatas (2012) Spectral Clustering of Graphs with General Degrees in the Extended Planted Partition Model, in | 0.644 | 2 | 2 | 100% |
| 9 | Gaure, Simen (2014) Correlation bias correction in two-way fixed-effects linear regression | 0.644 | 2 | 2 | 100% |
| 10 | Karrer, Brian and M. E. J. Newman (2011) Stochastic blockmodels and community structure in networks | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 32 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | 2cm Optimal Estimation of Two-Way Effects under Limited Mobility | 0.511 | 2 | 1 |
| 2 | Branching Fixed Effects: A Proposal for Communicating Uncertainty | 0.405 | 1 | 1 |