Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119531
Authors: 
Gaure, Simen
Year of Publication: 
2014
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 21/2014
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

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