Jochmans, K;
Weidner, M;
(2019)
Fixed-Effect Regressions on Network Data.
Econometrica
, 87
(5)
pp. 1543-1560.
10.3982/ECTA14605.
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Abstract
This paper considers inference on fixed effects in a linear regression model estimated from network data. An important special case of our setup is the two‐way regression model. This is a workhorse technique in the analysis of matched data sets, such as employer–employee or student–teacher panel data. We formalize how the structure of the network affects the accuracy with which the fixed effects can be estimated. This allows us to derive sufficient conditions on the network for consistent estimation and asymptotically valid inference to be possible. Estimation of moments is also considered. We allow for general networks and our setup covers both the dense and the sparse case. We provide numerical results for the estimation of teacher value‐added models and regressions with occupational dummies.
| Type: | Article |
|---|---|
| Title: | Fixed-Effect Regressions on Network Data |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.3982/ECTA14605 |
| Publisher version: | https://doi.org/10.3982/ECTA14605 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | connectivity, fixed effects, graph, Laplacian, limited mobility, teacher value-added, two-way regression model |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10071958 |
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