Title 10.5. Regression Estimator.pdf ✅

pacmann.io © 2022 – Pacmann AI 41 Regression Estimators
pacmann.io © 2022 – Pacmann AI 42 ● Fixed effects regressions start with a regression equation: Introduction ● It has a specific form with variations in both individuals and time. ● The intercept term in the regression equation is represented as βi instead of the standard β0, allowing for different intercepts for each individual.
pacmann.io © 2022 – Pacmann AI 43 Three obvious questions arise. Regression Estimate for Fixed Effect 1. How does allowing the intercept to vary achieve fixed effects estimates using within variation? 2. How do we estimate a regression with individual intercepts? 3. How do we interpret the results of this regression once we have estimated it?
pacmann.io © 2022 – Pacmann AI 44 Intercept Vary to Achieve Fixed Effect Estimates