Working Paper

The Estimation of Multi-dimensional Fixed Effects Panel Data Models

Laszlo Balazsi, Laszlo Matyas, Tom J. Wansbeek
CESifo, Munich, 2015

CESifo Working Paper No. 5251

The paper introduces the appropriate within estimators for the most frequently used three-dimensional fixed effects panel data models. It analyzes the behavior of these estimators in the cases of no self-flow data, unbalanced data, and dynamic autoregressive models. The main results are then generalized for higher dimensional panel data sets as well.

CESifo Category
Empirical and Theoretical Methods
Keywords: panel data, unbalanced panel, dynamic panel data model, multidimensional panel data, fixed effects, trade models, gravity models, FDI
JEL Classification: C100, C200, C400, F170, F470