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A Note on Identification of Match Fixed Effects as Interpretable Unobserved Match Affinity

Suguru Otani and Tohya Sugano

Papers from arXiv.org

Abstract: We highlight that match fixed effects, represented by the coefficients of interaction terms involving dummy variables for two elements, lack identification without specific restrictions on parameters. Consequently, the coefficients typically reported as relative match fixed effects by statistical software are not interpretable. To address this, we establish normalization conditions that enable identification of match fixed effect parameters as interpretable indicators of unobserved match affinity, facilitating comparisons among observed matches. Using data from middle school students in the 2007 Trends in International Mathematics and Science Study (TIMSS), we highlight the distribution of comparable match fixed effects within a specific school.

Date: 2024-06, Revised 2024-08
New Economics Papers: this item is included in nep-dcm and nep-ecm
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