On the Fixed-Effects Vector Decomposition

@inproceedings{Breusch2010OnTF,
  title={On the Fixed-Effects Vector Decomposition},
  author={Trevor Breusch and Michael B. Ward and Hoa T Nguyen and Tom Kompas},
  year={2010}
}
This paper analyzes the properties of the fixed-effects vector decomposition estimator, an emerging and popular technique for estimating time-invariant variables in panel data models with group effects. This estimator was initially motivated on heuristic grounds, and advocated on the strength of favorable Monte Carlo results, but with no formal analysis. We show that the three-stage procedure of this decomposition is equivalent to a standard instrumental variables approach, for a specific set… CONTINUE READING
21 Citations
13 References
Similar Papers

References

Publications referenced by this paper.
Showing 1-10 of 13 references

Published by Oxford University Press on behalf of the Society for Political Methodology

  • The Author
  • All rights reserved. For Permissions, please…
  • 2011
Highly Influential
3 Excerpts

On the fixed-effects vector decomposition

  • Review 89634–47. Breusch, Trevor, Michael B. Ward, Hoa Thi Minh Nguyen, Tom Kompas
  • 2011
2 Excerpts

Tantalus on the road to Asymptotia

  • Press. Leamer, E Edward
  • Journal of Economic Perspectives 24:31–46
  • 2010

Finite sample econometrics

  • University of Essex. Ullah, Aman.
  • Oxford: Oxford University Press. Wooldridge…
  • 2004

Effects on inference of pretesting the exogeneity of a regressor

  • M Jeffrey
  • Economics Letters
  • 1997

1995.What to do (and not to do) with time-series cross-section data

  • 54869–81. Beck, Nathaniel, Jonathan Katz
  • 1995

Efficient estimation using panel data

  • M. Guglielmo
  • Econometrica
  • 1989

Similar Papers

Loading similar papers…