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Practical Fixed-Effects Estimation Methods for the Three-Way Error-Components Model

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Andrews, Martyn, Schank, Thorsten, Upward, Richard·2006·The Stata Journal: Promoting communications on statistics and Stata

Abstract

Methods for fixed-effects estimation of the three-way error-components model are not yet standard. Where possible, we make the fixed-effects methods originally developed by Abowd, Kramarz, and Margolis ( Econometrica 67: 251–333) for linked worker–firm data more accessible. We also show how these methods can be implemented in Stata. There is a caveat, however. If the researcher wants to recover estimates of the error components themselves, and the number of units at the higher level of aggregation is large, memory or matrix constraints may make using Stata to estimate the components themselves infeasible.

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Metadata

Authors
Andrews, M., Schank, T., & Upward, R.
Venue
The Stata Journal: Promoting communications on statistics and Stata
Published
2006-11
Volume
6
Issue
4
Pages
461-481
ISSN
  • 1536-867X (ISSN-L)
  • 1536-8734
OpenAlex
W2161994817
Cited by
159
References
0
FWCI
23.89
Type
journal article
Language
en
Open access
bronze

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CoChat. (2026). Citation check: Practical Fixed-Effects Estimation Methods for the Three-Way Error-Components Model. https://app.cochat.ai/papers/10.1177/1536867x0600600402
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Andrews, M., Schank, T., & Upward, R. (2006). Practical Fixed-Effects Estimation Methods for the Three-Way Error-Components Model. The Stata Journal: Promoting communications on statistics and Stata. https://doi.org/10.1177/1536867x0600600402

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.