I show that a class of fixed effects estimators is reasonably robust for estimating the population-averaged slope coefficients in panel data models with individual-specific slopes, where the slopes are allowed to be correlated with the covariates. In addition to including the usual fixed effects estimator, the results apply to estimators that eliminate individual-specific trends. Further, asymptotic variance matrices are straightforward to estimate. I apply the results, and propose alternative estimators, to estimation of average treatment in a general class of unobserved effects models.
Authors
Working Paper details
- DOI
- 10.1920/wp.cem.2004.0404
- Publisher
- IFS
Suggested citation
Wooldridge, J. (2004). On the robustness of fixed effects and related estimators in correlated random coefficient panel data models.. London: IFS. Available at: https://ifs.org.uk/publications/robustness-fixed-effects-and-related-estimators-correlated-random-coefficient-panel (accessed: 25 April 2024).
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