Slow Movers in Panel Data

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Sasaki, Yuya, Ura, Takuya
Format: Preprint
Published: 2021
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866908761772261376
author Sasaki, Yuya
Ura, Takuya
author_facet Sasaki, Yuya
Ura, Takuya
contents Panel data often contain stayers (units with no within-variations) and slow movers (units with little within-variations). In the presence of many slow movers, conventional econometric methods can fail to work. We propose a novel method of robust inference for the average partial effects in correlated random coefficient models robustly across various distributions of within-variations, including the cases with many stayers and/or many slow movers in a unified manner. In addition to this robustness property, our proposed method entails smaller biases and hence improves accuracy in inference compared to existing alternatives. Simulation studies demonstrate our theoretical claims about these properties: the conventional 95% confidence interval covers the true parameter value with 37-93% frequencies, whereas our proposed one achieves 93-96% coverage frequencies.
format Preprint
id arxiv_https___arxiv_org_abs_2110_12041
institution arXiv
publishDate 2021
record_format arxiv
spellingShingle Slow Movers in Panel Data
Sasaki, Yuya
Ura, Takuya
Econometrics
Panel data often contain stayers (units with no within-variations) and slow movers (units with little within-variations). In the presence of many slow movers, conventional econometric methods can fail to work. We propose a novel method of robust inference for the average partial effects in correlated random coefficient models robustly across various distributions of within-variations, including the cases with many stayers and/or many slow movers in a unified manner. In addition to this robustness property, our proposed method entails smaller biases and hence improves accuracy in inference compared to existing alternatives. Simulation studies demonstrate our theoretical claims about these properties: the conventional 95% confidence interval covers the true parameter value with 37-93% frequencies, whereas our proposed one achieves 93-96% coverage frequencies.
title Slow Movers in Panel Data
topic Econometrics
url https://arxiv.org/abs/2110.12041