Unbiased Analysis of Today's Healthcare Issues

Fixed Effects Logit Estimator and the Incidental Parameter Problem

Fixed effects (FE) regressions are a useful tool for controlling for time-invariant factors in a regression specification.  When using a linear OLS model, FE represent the average value of the dependent variable for that individual after controlling for covariates.  Estimating a fixed effects model for non-linear regressions, however, can be problematic. For instance, if you […]

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