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Re: st: xttobit with fixed effect???
David Reinstein asked whether there is a fixed-effect extension to -xttobit-.
In responding, Steven Stillman mentioned that fixed-effects nonlinear models
provide inconsistent parameter estimates.
If the list will tolerate a couple of na´ve questions: not being an
econometrician, I'm curious as to why a preference for fixed-effects models is
often expressed for longitudinal data? Is it because the number of panels in
econometrics studies is sometimes too few to justify handling panels as a
random effect? If so, does it matter that a fixed-effect estimator is not
consistent, since with a fixed-effect model, prediction and hypothesis testing
are confined to the panels in the data in-hand?
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