Heteroskedasticity-robust standard errors for fixed effects panel data regression / James H. Stock, Mark W. Watson.

Author/creator Stock, James H.
Other author Watson, Mark W.
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers

SeriesNBER working paper series ; working paper . 323
Working paper series (National Bureau of Economic Research : Online) ; working paper no. . 323. UNAUTHORIZED
Summary "The conventional heteroskedasticity-robust (HR) variance matrix estimator for cross-sectional regression (with or without a degrees of freedom adjustment), applied to the fixed effects estimator for panel data with serially uncorrelated errors, is inconsistent if the number of time periods T is fixed (and greater than two) as the number of entities n increases. We provide a bias-adjusted HR estimator that is (nT)1/2 -consistent under any sequences (n, T) in which n and/or T increase to. The conventional heteroskedasticity-robust (HR) variance matrix estimator for cross-sectional regression (with or without a degrees of freedom adjustment), applied to the fixed effects estimator for panel data with serially uncorrelated errors, is inconsistent if the number of time periods T is fixed (and greater than two) as the number of entities n increases. We provide a bias-adjusted HR estimator that is (nT)1/2 -consistent under any sequences (n, T) in which n and/or T increase to "--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 6/29/2006.
Bibliography noteIncludes bibliographical references.
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Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2006619594

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