Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202811 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12465
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We propose a novel procedure, built within a Generalized Method of Moments framework, which exploits unpaired observations (singletons) to increase the efficiency of longitudinal fixed effect estimates. The approach allows increasing estimation efficiency, while properly tackling the bias due to unobserved time-invariant characteristics. We assess its properties by means of Monte Carlo simulations, and apply it to a traditional Total Factor Productivity regression, showing efficiency gains of approximately 8-9 percent.
Subjects: 
efficient estimation
panel data
singletons
unobserved heterogeneity
GMM
JEL: 
C23
C33
C51
Document Type: 
Working Paper

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