Fixed-effect regressions on network data

Koen Jochmans and Martin Weidner

No CWP16/19, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

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.

Date: 2019-04-03
New Economics Papers: this item is included in nep-net and nep-ure
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Citations: View citations in EconPapers (27)

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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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