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Inference for Fixed Effects Estimators when Panels are Unbalanced

Daniel Czarnowske, Amrei Stammann

arXiv 11 Jul 2026 · Econometrics

arXiv:2607.10246 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We derive the asymptotic properties of two-way fixed effects M-estimators with missing observations in an asymptotic framework in which the numbers of cross-sectional units and time periods grow jointly. We allow the selection process to be deterministic (conditional on the unobserved effects and initial conditions), stochastic, or mixed, and we impose only a conditional mean restriction. The uncorrected estimators are asymptotically normal but not centered at zero, suffering from incidental parameter and feedback biases. Feedback bias can be induced by predetermined regressors in the outcome equation and by a predetermined selection process. We propose debiased estimators that handle both sources without requiring knowledge of which regressors or selection components are predetermined.

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28
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66
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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
1Iván Fernández-Val and Martin Weidner (2016) Individual and Time Effects in Nonlinear Panel Models with Large N, T0.94425684%
2Ayden Higgins (2026) Jackknife Inference for Fixed Effects Models0.87462100%
3Nickell, Stephen (1981) Biases in dynamic models with fixed effects0.64422100%
4Daniel Czarnowske and Amrei Stammann (2026) (Debiased) Inference for Fixed Effects Estimators with Three-Dimensional Panel and Network Data self0.5115220%
5Geert Dhaene and Koen Jochmans (2015) Split-Panel Jackknife Estimation of Fixed-Effect Models0.51121100%
6Jinyong Hahn and Guido Kuersteiner (2011) Bias Reduction for Dynamic Nonlinear Panel Models with Fixed Effects0.51121100%
7M. S. Bartlett (1953) Approximate Confidence Intervals. II. More than one Unknown Parameter0.40511100%
8Bonhomme, Stephane (2025) Back to feedback: Dynamics and heterogeneity in panel data0.40511100%
9Czarnowske, Daniel and Stammann, Amrei (2026) Inference in unbalanced panel data models with interactive fixed effects self0.40511100%
10Dzemski, Andreas (2019) An empirical model of dyadic link formation in a network with unobserved heterogeneity0.40511100%

Showing the top 10 of 28 scored citations.