Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/119531 
Authors: 
Year of Publication: 
2014
Series/Report no.: 
Memorandum No. 21/2014
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
When doing two-way fixed effects OLS estimations, both the variances and covariance of the fixed effects are biased. A formula for a bias correction is known, but in large datasets it involves inverses of impractically large matrices. We detail how to compute the bias correction in this case.
Subjects: 
Limited mobility bias
Two way fixed effects
Linear regression
JEL: 
C13
C33
C55
C87
Document Type: 
Working Paper

Files in This Item:
File
Size
365.11 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.