# Fixed $T$ Estimation of Linear Panel Data Models with Interactive Fixed Effects

@inproceedings{Higgins2021FixedE, title={Fixed \$T\$ Estimation of Linear Panel Data Models with Interactive Fixed Effects}, author={Ayden Higgins}, year={2021} }

This paper studies the estimation of linear panel data models with interactive fixed effects, where one dimension of the panel, typically time, may be fixed. To this end, a novel transformation is introduced that reduces the model to a lower dimension, and, in doing so, relieves the model of incidental parameters in the cross-section. The central result of this paper demonstrates that transforming the model and then applying the principal component (PC) estimator of \cite{bai_panel_2009…

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