A SPATIAL DYNAMIC PANEL DATA MODEL WITH BOTH TIME AND INDIVIDUAL FIXED EFFECTS

B-Tier
Journal: Econometric Theory
Year: 2010
Volume: 26
Issue: 2
Pages: 564-597

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper establishes asymptotic properties of quasi-maximum likelihood estimators for spatial dynamic panel data with both time and individual fixed effects when the number of individuals n and the number of time periods T can be large. We propose a data transformation approach to eliminate the time effects. When n / T → 0, the estimators are $\root \of {nT}$ consistent and asymptotically centered normal; when n is asymptotically proportional to T, they are $\root \of {nT}$ consistent and asymptotically normal, but the limit distribution is not centered around 0; when n / T → ∞, the estimators are consistent with rate T and have a degenerate limit distribution. We also propose a bias correction for our estimators. When n1/3 / T → 0, the correction will asymptotically eliminate the bias and yield a centered confidence interval. The estimates from the transformation approach can be consistent when n is a fixed finite number.

Technical Details

RePEc Handle
repec:cup:etheor:v:26:y:2010:i:02:p:564-597_10
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25