BIAS REDUCTION FOR DYNAMIC NONLINEAR PANEL MODELS WITH FIXED EFFECTS

B-Tier
Journal: Econometric Theory
Year: 2011
Volume: 27
Issue: 6
Pages: 1152-1191

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

The fixed effects estimator of panel models can be severely biased because of well-known incidental parameter problems. It is shown that this bias can be reduced in nonlinear dynamic panel models. We consider asymptotics where n and T grow at the same rate as an approximation that facilitates comparison of bias properties. Under these asymptotics, the bias-corrected estimators we propose are centered at the truth, whereas fixed effects estimators are not. We discuss several examples and provide Monte Carlo evidence for the small sample performance of our procedure.

Technical Details

RePEc Handle
repec:cup:etheor:v:27:y:2011:i:06:p:1152-1191_00
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25