Fixed Effect Model

There are two popular statistical models for meta-analysis, the fixed-effect model and the random-effects model. The fact that these two models employ similar sets of formulas to compute statistics, and sometimes yield similar estimates for the various parameters, may lead people to believe that the models are interchangeable. In fact, though, the models represent fundamentally different assumptions about the data. The selection of the appropriate model is important to ensure that the various statistics are estimated correctly. Additionally, and more fundamentally, the model serves to place the analysis in context. It provides a framework for the goals of the analysis as well as for the interpretation of the statistics.

Meta-analysis and structural equation modeling (SEM) are two important statistical methods in the behavioral, social, and medical sciences. They are generally treated as two unrelated topics in the literature. The present article proposes a model to integrate fixed-, random-, and mixed-effects meta-analyses into the SEM framework. By applying an appropriate transformation on the data, studies in a meta-analysis can be analyzed as subjects in a structural equation model. This article also highlights some practical benefits of using the SEM approach to conduct a meta-analysis. Specifically, the SEM-based meta-analysis can be used to handle missing covariates, to quantify the heterogeneity of effect sizes, and to address the heterogeneity of effect sizes with mixture models. Examples are used to illustrate the equivalence between the conventional meta-analysis and the SEM-based meta-analysis. Future directions on and issues related to the SEM-based meta-analysis are discussed.

Fixed effects estimators of nonlinear panel models can be severely biased due to the incidental parameters problem. In this paper I find that the most important component of this incidental parameters bias for probit fixed effects estimators of index coefficients is proportional to the true value of these coefficients, using a large-T expansion of the bias. This result allows me to derive a lower bound for this bias, and to show that fixed effects estimates of ratios of coefficients and average marginal effects have zero bias in the absence of heterogeneity, and have negligible bias relative to their true values for a wide variety of distributions of regressors and individual effects.

Using plot level production data from a nation-wide survey in India, we study the impact of irrigation on crop productivity, land prices and cropping intensities. Our main identification strategy is based on a sufficient number of households cultivating multiple plots of different irrigation status. After household fixed effects and plot characteristics are controlled for, our estimations show that irrigation has a strong and significant impact on all these outcomes with the dominant effects on cropping intensities. We find quality of irrigation also matters. Our results provide support for continuing investments to improve access and quality of irrigation in India.

L'objectif de ce chapitre est d'évaluer le dispositif de formation professionnelle mis en place par l'Office de la Formation Professionnelle et de la Promotion du Travail (l'OFPPT). Les estimations économétriques ont été effectuées sur des données de panel couvrant les années 2000, 2001 et 2002. Le modèle à paramètres hétérogènes-qui part du principe que les effets des cinq facteurs d'insertion peuvent être dispersés et varient d'un individu à un autre-a été utilisé. Les résultats montrent que globalement le dispositif de formation professionnelle (FP) est efficace dans la mesure où les taux d'insertion sont très importants. Cependant, nos résultats montrent la persistance d'importants dysfonctionnements : les politiques publiques d'aide à l'insertion des lauréats de la FP sont inefficaces alors que les réseaux et pratiques de cooptation sont les moyens privilégiés pour s'insérer facilement dans le marché du travail. La (mauvaise) réputation des centres de FP auprès du grand public, mais aussi après des entreprises, a des effets dévastateurs sur la probabilité d'insertion. Concernant la formation continue, il apparaît que les entreprises opportunistes sont sévèrement sanctionnées, alors que celles qui « jouent le jeu » sont récompensées en matière d'amélioration de leurs performances. De même, les contrats spéciaux de formation s'avèrent être une mesure efficace et pertinente de la politique publique en matière de formation tout au long de la vie.

The objective of this chapter is to estimate the performance and the return of professional training in term of integration of the professional training graduates in labour market. Using a micro econometric study based on data of the OFPPT graduates over the period 2000, 2001 and 2002, the estimations are made by considering two models. The first one is a model with fixed effect which is converging and efficient in the context of this study. The second is a model with heterogeneous parameters where we consider the effects of factors of integration that can be scattered and vary from an individual to the other one. The results show that globally the implement of professional training is efficient as far as the rates of employability are very significant. We conclude that the graduates of the professional training are confronted with a double problem. On one hand, the difficulties inherent to the Moroccan labour market which has its own specific logic, and on the other hand, an effect...

The objective of this study is to examine the determinants of labor absorption in the trade, hotel and restaurant sector and its impact on Gross Regional Domestic Product/GRDP at Bali Province. This study is important due to the fact that the GRDP in this sector is the highest compared to other sector but the labor absorption is lower than the agriculture sector. This study used panel data comprising 9 regencies/cities at Bali Province in the period 2003-2009 including fixed effect model and simultaneous equation model of Two-Stage Least Square. The results showed that GRDP, working age population, and the minimum wage have positive effect on employment, while the educated unemployment has no significant effect on the employment in the trade, hotel and restaurant sector. In addition, increases in employment and workers productivity have positive and significant effects the GRDP in the trade, hotel and restaurant sector at Bali Province.

Partially linear regression models with fixed effects are useful tools for making econometric analyses and normalizing microarray data. [7] proposed a computation friendly difference-based series estimation (DSE) for them. We show that the DSE is not asymptotically efficient in most cases and further propose a weighted difference-based series estimation (WDSE). The weights in it do not involve any unknown parameters. The asymptotic properties of the resulting estimators are established for both balanced and unbalanced cases, and it is shown that they achieve a semiparametric efficient boundary. Additionally, we propose a variable selection procedure for identifying significant covariates in the parametric part of the semiparametric fixed-effects regression model. The method is based on a combination of the nonconcave penalization (Fan and Li, 2001 [13]) and weighted difference-based series estimation techniques. The resulting estimators have the oracle property; that is, they can correctly identify the true model as if the true model (the subset of variables with nonvanishing coefficients) were known in advance. Simulation studies are conducted and an application is given to demonstrate the finite sample performance of the proposed procedures.

As the global economy faces strong vulnerability in the current period and coming future, it is important to understand how the economic climate will respond. The past years have seen increase in unemployment rates and the resulting impact on the economies This paper has evaluated whether this change in unemployment will lead to an impact on the housing markets. Using data from 35 OECD countries and robust methodology, the result shows that unemployment has a strong and negative impact on housing prices. The heterogeneity analysis shows that lagged values of unemployment also affect housing prices in current period. Using sub-samples from different regions, the result shows that unemployment continues to show strong impact on housing prices especially in rich and European countries. The results are in line with literature, the results are robust across all configurations. Policymakers needs to use this and similar literature in understanding that unemployment may also affect economy through housing price channel as well as among other factors.

a b s t r a c t Traditional panel stochastic frontier models do not distinguish between unobserved individual heterogeneity and inefficiency. They thus force all time-invariant individual heterogeneity into the estimated inefficiency. Greene

While the provision of subsidized loans through the VBSP forms a cornerstone of Vietnam’s antipoverty policy, little is known on the impact of these preferential loans. In this paper, we use fixed effect regression to estimate the average effect of the program on income and expenditures of participating households, and subsequently assess the impact of the program on poverty and inequality. Our estimates indicate that the VBSP was quite effective. Participation on average seemed to have increased household income and expenditures by about thirty percent of the value of the loan, and an increase in loan size would have a similar effect. Despite that only one third of loans reaches households who are actually poor, our computations indicate that the program decreased the head count of poverty for its participants by almost four percentage points. Similarly, the program decreased the poverty gap index and the poverty-severity index by almost twenty percent. The impact on Vietnam’s ineq...

Traditional panel stochastic frontier models do not distinguish between unobserved individual heterogeneity and inefficiency. They thus force all time-invariant individual heterogeneity into the estimated inefficiency. Greene (2005) proposes a true fixed-effect stochastic frontier model which, in theory, may be biased by the incidental parameters problem. The problem usually cannot be dealt with by model transformations owing to the nonlinearity of the stochastic frontier model. In this paper, we propose a class of panel stochastic frontier models which create an exception. We show that first-difference and within-transformation can be analytically performed on this model to remove the fixed individual effects, and thus the estimator is immune to the incidental parameters problem. Consistency of the estimator is obtained by either N → ∞ or T → ∞, which is an attractive property for empirical researchers.

This paper analyses the adjustment speed of the firm to achieve target leverage. The study further extends the empirical work to diagnose the factors that significantly impact its capital structure. The study consists of 132 Indian non-financial firms listed in the National Stock Exchange for the period 1998-2018. A static panel model and dynamic two-step GMM model has been used to make a comparative analysis and select the best model. The results of the study claim that the adjustment speed is 44 percent per annum, yielding a half-life of 1.18 years. Further, the study reveals that profitability, tangibility, and GDP growth are significantly related to leverage in the dynamic model. In the static model, besides profitability, tangibility, and GDP Growth, its uniqueness, growth, and age also significantly impact leverage. In the study, the R square appears to be 0.34, and the determinants, namely, profitability, growth uniqueness, and age, follow pecking order theory, and size, tangibility, liquidity, GDP Growth, and inflation follow trade-off theory. The comparative statement results reveal that the dynamic model is more realistic, considering the adjustment cost. This paper can be further improved by incorporating human resource factors and their impact on its leverage.

The paper empirically inspects the impact of financial inclusion on child malnutrition in developing countries using the panel data for the time span of 2004-2018.To check the impact, fixed effect model, 2 Stage least square and System GMM estimation techniques are used. The outcomes of the analysis shows that usually the effect of financial inclusion on child malnutrition is negative, supporting results from earlier empirical literature. However, our estimation methodology allows us to investigate further that what leads this overall result. We concluded that that financial inclusion help to decrease child malnutrition, as it would support poor and needy people to handle the difficult situations like child malnutrition as people will have easy access to money and they can treat their child within a time of need. Financial development, per capita income, female education and health expenditure negatively effects child malnutrition while food prices have positive impact on child malnutrition. The bottom line of the analysis is that strong financial sector of any country is an important part that helps to support needy people to deal with uncertain conditions. The study highlights that food security situation should be improved in developing countries so that child malnutrition can be controlled. Government should take certain steps to guide about financial inclusion and provide poor people with these services in the hour of need so that child malnutrition can be controlled in a country that will provide long-term benefits to the economy.

In this article, we apply Max Weber's ideal types of fief and benefice feudalism to elite and non-elite chemistry departments in the USA. We develop a theoretical analogy of academic feudalism in regard to three dimensions: power relations, engagement with companies , and the impact of structural changes on the autonomy of scholars. We use a mixed methods approach to track changes in productivity and industrial collaboration on a departmental level and the researcher's understanding of research autonomy on the individual level. On the departmental level, our findings suggest that scholars located at elite departments are able to utilize federal and industrial resources to increase publications over time. On the individual level, we establish that researchers in both segments perceive their autonomy as being very high, whereas practical autonomy differs according to department. While scholars at elite departments remain relatively autonomous in practice, scholars at non-elite departments often tend to tailor their research to specific requirements to receive funding.

This work was carried out through a grant from the Poverty and Economic Policy (PEP) Research Network (www.pep-net.org), which is financed by the Australian Aid Agency (AusAID) (http://www.ausaid.gov.au), the Canadian International Development Agency (www.acdi-cida.gc.ca), and the International Development Research Centre (IDRC) (www.idrc.ca).

The objective of this paper represents the analysis of the way the Romania's economic integration in the EU will influence the regional specialization and industrial activities localization within NUTS (the eight regions of Romania) during the period 1991-2004, using absolute measures (Herfindahl index).

While the provision of subsidized loans through the VBSP forms a cornerstone of Vietnam's antipoverty policy, little is known on the impact of these preferential loans. In this paper, we use fixedeffect regression to estimate the average effect of the program on income and expenditures of participating households, and subsequently assess the impact of the program on poverty and inequality. Our estimates indicate that the VBSP was quite effective. Participation on average seemed to have increased household income and expenditures by about thirty percent of the value of the loan, and an increase in loan size would have a similar effect. Despite that only one third of loans reaches households who are actually poor, our computations indicate that the program decreased the head count of poverty for its participants by almost four percentage points. Similarly, the program decreased the poverty gap index and the poverty-severity index by almost twenty percent. The impact on Vietnam's inequality was significant but small, which is not surprising because of the yet limited outreach of seven percent of the rural population.

The paper empirically inspects the impact of financial inclusion on child malnutrition in developing countries using the panel data for the time span of 2004-2018.To check the impact, fixed effect model, 2 Stage least square and System GMM estimation techniques are used. The outcomes of the analysis shows that usually the effect of financial inclusion on child malnutrition is negative, supporting results from earlier empirical literature. However, our estimation methodology allows us to investigate further that what leads this overall result. We concluded that that financial inclusion help to decrease child malnutrition, as it would support poor and needy people to handle the difficult situations like child malnutrition as people will have easy access to money and they can treat their child within a time of need. Financial development, per capita income, female education and health expenditure negatively effects child malnutrition while food prices have positive impact on child malnutrition. The bottom line of the analysis is that strong financial sector of any country is an important part that helps to support needy people to deal with uncertain conditions. The study highlights that food security situation should be improved in developing countries so that child malnutrition can be controlled. Government should take certain steps to guide about financial inclusion and provide poor people with these services in the hour of need so that child malnutrition can be controlled in a country that will provide long-term benefits to the economy.

This paper examines the effect corporate taxes on the use of debt capital or leverage in a firm's capital structure. Several capital structure theories argue that changes in the rate of corporation tax should directly affect the debt-equity ratio of a firm, such that an increase in the corporate tax rate should increase aggregate debt-equity ratios. Most of the previous empirical studies tested the effect of corporate tax rates indirectly by using non-debt tax shields. Unlike previous studies, this study used the corporate tax rate on its own as a determinant of capital structure in a pooled cross-section and time-series analysis. Applying the fixed effect model the results reveals that a firm's financial leverage is an increasing function of corporate taxes, market structure, free cash flows, collateralizable asset value, firm size, and dividend payouts and a decreasing function of profitability, growth opportunities, uniqueness of the products, business risk or volatility, interest rates, non-debt tax shields and reputation. However, the significance and, in some cases, the direction of the effects of these variables vary depending on the type of debt, measures of leverage and the model specified. The findings of the study have important implication for policy makers, corporate executives and academics alike.