The Equivalence of Panel Data Estimators under Orthogonal Experimental Design

David Lewis Dickinson and Ronald L. Oaxaca

No 05-07, Working Papers from Department of Economics, Appalachian State University

Abstract: This paper demonstrates the equivalence between pooled OLS, Fixed Effects, and Random Effects estimates when applied to data generated from an orthogonal experimental design under certain conditions. We show that the point estimates of the treatment effects are identical between these three panel data estimators but that the estimated standard errors differ. Specifically, the estimated variance covariance matrices are identical between FE and RE but differ from that of OLS. Despite the equivalence it is meaningful to test for OLS vs FE/RE because the error distributional assumptions are different.

Date: Written
View list of references View citations in EconPapers

Downloads: (external link)
http://econ.appstate.edu/RePEc/pdf/wp0507.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:apl:wpaper:05-07

Access Statistics for this paper

More papers in Working Papers from Department of Economics, Appalachian State University
Contact information at EDIRC.
Series data maintained by John Whitehead ().