Fixed-Effect Regressions on Network Data

Koen Jochmans and Martin Weidner

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

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 sparse case. We provide numerical results for the estimation of teacher value-added models and regressions with occupational dummies.

Keywords: connectivity; fixed effects; graph; Laplacian; limited mobility; teacher value-added; two-way regression model (search for similar items in EconPapers)
JEL-codes: C23 C55 (search for similar items in EconPapers)
Date: 2019-04-01
New Economics Papers: this item is included in nep-ict, nep-net and nep-ure
Note: kj345
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

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https://www.econ.cam.ac.uk/sites/default/files/pub ... pe-pdfs/cwpe1938.pdf

Related works:
Journal Article: Fixed‐Effect Regressions on Network Data (2019)
Working Paper: Fixed-Effect Regressions on Network Data (2019)
Working Paper: Fixed-effect regressions on network data (2019)
Working Paper: Fixed-effect regressions on network data (2018)
Working Paper: Fixed-effect regressions on network data (2017)
Working Paper: Fixed-effect regressions on network data (2017)
Working Paper: Fixed-effect regressions on network data (2016)
Working Paper: Fixed-effect regressions on network data (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:1938

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