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High-Dimensional Panel Data Models with Interactive Fixed Effects: Beyond the Linear Case

Maximilian Ruecker, Michael Vogt, Oliver Linton

arXiv 3 Aug 2026 · Econometrics

arXiv:2608.02055 · PDF · Extracted main text

Abstract

Modern economic panel data sets are often high-dimensional: they contain information on a wide variety of control variables whose number may even exceed the sample size. Nevertheless, the literature on econometric methods for high-dimensional panels is quite limited. In this paper, we study high-dimensional panel models with interactive fixed effects where the regression function has an additive structure, i.e., each covariate enters the model via an unknown nonlinear component function. We develop estimation methodology and theory in this additive framework which substantially extends previous work on the high-dimensional linear case by Ruecker et al. (2025). In the theoretical part of the paper, we derive the convergence rate of our estimator for both the small-T and the large-T panel case. The theory is complemented by comprehensive Monte Carlo experiments and an empirical application.

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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
1Maximilian Rücker AND Michael Vogt AND Oliver Linton AND Christopher… (2025) Estimation and Inference in High-Dimensional Panel Data Models with Interactive Fixed Effects1.000319100%
2Jian Huang and Joel L. Horowitz and Fengrong Wei (2010) Variable selection in nonparametric additive models0.92843100%
3Scheidegger, Cyrill and Guo, Zijian and Bühlmann, Peter (2025) Spectral Deconfounding for High-Dimensional Sparse Additive Models0.87452100%
4Lukas Meier and Sara van de Geer and Peter Bühlmann (2009) High-dimensional additive modeling0.73732100%
5Whitney K. Newey (1997) Convergence rates and asymptotic normality for series estimators0.73732100%
6Rudelson, Mark and Zhou, Shuheng Reconstruction from Anisotropic Random Measurements0.64422100%
7B\ (2011) Statistics for high-dimensional data: methods, theory and applications0.64422100%
8Zijian Guo and Cun-Hui Zhang (2022) Extreme eigenvalues of nonlinear correlation matrices with applications to additive models0.64422100%
9Charles J. Stone (1985) Additive Regression and Other Nonparametric Models0.64422100%
10Alexandre Belloni and Victor Chernozhukov and Christian Hansen and D… (2016) Inference in High-Dimensional Panel Models With an Application to Gun Control0.58531100%

Showing the top 10 of 44 scored citations.