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Estimation of Random-Coefficient Dynamic Panel Data Models with a Fixed T

Xun Tang, Pei Yu

arXiv 25 Aug 2026 · Econometrics

arXiv:2608.23988 · PDF · Extracted main text

Abstract

We study dynamic linear panel data models in which the lagged outcomes and strictly exogenous covariates carry individual-specific coefficients and the time-varying errors have a flexible covariance structure. With a fixed number of time periods, we point-identify the joint distribution of the random coefficients and the structural errors under a distributional form of strict exogeneity, and propose a closed-form, multi-step estimator based on the inverse Radon transform. We establish a uniform convergence rate for the estimator of the random coefficient density, as well as uniform consistency of the estimator for the conditional density of the time-varying structural errors. Monte Carlo simulations demonstrate good finite-sample performance of the estimators.

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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
1Hoderlein, Stefan and Klemelä, Jussi and Mammen, Enno (2010) Analyzing the random coefficient model nonparametrically0.96510690%
2Masten, Matthew A (2018) Random coefficients on endogenous variables in simultaneous equations models0.89124871%
3Marx, Philip and Tamer, Elie and Tang, Xun (2024) Heterogeneous treatment effects via linear dynamic panel data models self0.87482100%
4Arellano, Manuel and Bonhomme, Stéphane (2012) Identifying distributional characteristics in random coefficients panel data models0.87452100%
5Bissantz, Nicolai and Holzmann, Hajo and Proksch, Katharina (2014) Confidence regions for images observed under the Radon transform0.8434375%
6Graham, Bryan S. and Powell, James L (2012) Identification and estimation of average partial effects in “irregular” correlated random coefficient panel data models0.7375340%
7Arellano, Manuel and Bond, Stephen (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations0.73732100%
8Arellano, Manuel and Honoré, Bo (2001) Panel data models: Some recent developments0.64422100%
9Blundell, Richard and Bond, Stephen (1998) Initial conditions and moment restrictions in dynamic panel data models0.64422100%
10Liu, Laura and Moon, Hyungsik Roger and Schorfheide, Frank (2020) Forecasting with dynamic panel data models0.64422100%

Showing the top 10 of 46 scored citations.