Economics, Econometrics and Finance
4 years ago
Semiparametric combined estimator improves accuracy in panel data models.
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Paper Summary
The article introduces a new way to estimate panel data models by combining different methods. They look at models with random and fixed effects and find that combining these methods can improve accuracy, especially when dealing with endogeneity issues. The combined estimator performs better than the fixed effect estimator in terms of accuracy. The researchers tested their method using US state-level data on public sector capital and private economy production.