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| Format: | Preprint |
| Published: |
2024
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2412.20555 |
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| _version_ | 1866912962490400768 |
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| author | Karl, Andrew T. |
| author_facet | Karl, Andrew T. |
| contents | The Hausman specification test assesses the random-effects specification by comparing the random-effects estimator with a fixed-effects alternative. This note shows how a recently proposed bias diagnostic for linear mixed models can complement that test in random-effects panel-data applications. The diagnostic delivers parameter-specific internal estimates of finite-sample bias, together with permutation-based $p$-values, from a single fitted random-effects model. We illustrate its use in a gasoline-demand panel and in a value-added model for teacher evaluation using publicly available \textsf{R} packages, and we discuss how the resulting coefficient-specific bias summaries can be incorporated into routine practice. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2412_20555 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Parameter-Specific Bias Diagnostics in Random-Effects Panel Data Models Karl, Andrew T. Methodology The Hausman specification test assesses the random-effects specification by comparing the random-effects estimator with a fixed-effects alternative. This note shows how a recently proposed bias diagnostic for linear mixed models can complement that test in random-effects panel-data applications. The diagnostic delivers parameter-specific internal estimates of finite-sample bias, together with permutation-based $p$-values, from a single fitted random-effects model. We illustrate its use in a gasoline-demand panel and in a value-added model for teacher evaluation using publicly available \textsf{R} packages, and we discuss how the resulting coefficient-specific bias summaries can be incorporated into routine practice. |
| title | Parameter-Specific Bias Diagnostics in Random-Effects Panel Data Models |
| topic | Methodology |
| url | https://arxiv.org/abs/2412.20555 |