Ontology highlight
ABSTRACT:
SUBMITTER: Kropko J
PROVIDER: S-EPMC7173782 | biostudies-literature | 2020
REPOSITORIES: biostudies-literature
Kropko Jonathan J Kubinec Robert R
PloS one 20200421 4
While fixed effects (FE) models are often employed to address potential omitted variables, we argue that these models' real utility is in isolating a particular dimension of variance from panel data for analysis. In addition, we show through novel mathematical decomposition and simulation that only one-way FE models cleanly capture either the over-time or cross-sectional dimensions in panel data, while the two-way FE model unhelpfully combines within-unit and cross-sectional variation in a way t ...[more]