In recent years the massive emergence of multi-dimensional panels has led to an increasing demand for more sophisticated model formulations with respect to the well known two-dimensional ones to address properly the additional heterogeneity in the data. This chapter deals with the most relevant three-dimensional fixed effects model specifications and derives appropriate Least Squares Dummy Variables andWithin estimators for them. The main results of the chapter are also generalized for unbalanced panels, cross-sectional dependence in the error terms, and higher dimensional data. Some thoughts on models with varying slope coefficients are also presented.
CITATION STYLE
Balazsi, L., Matyas, L., & Wansbeek, T. (2017). Fixed effects models. In Advanced Studies in Theoretical and Applied Econometrics (Vol. 50, pp. 1–34). Springer. https://doi.org/10.1007/978-3-319-60783-2_1
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