Integrated likelihood based inference for nonlinear panel data models with unobserved effects

Martin Schumann, Thomas A. Severini, Gautam Tripathi*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

We propose a new integrated likelihood based approach for estimating panel data models when the unobserved individual effects enter the model nonlinearly. Unlike existing integrated likelihoods in the literature, the one we propose is closer to a genuine likelihood. Although the statistical theory for the proposed estimator is developed in an asymptotic setting where the number of individuals and the number of time periods both approach infinity, results from a simulation study suggest that our methodology can work very well even in moderately sized panels of short duration in both static and dynamic models.

Original languageEnglish (US)
Pages (from-to)73-95
Number of pages23
JournalJournal of Econometrics
Volume223
Issue number1
DOIs
StatePublished - Jul 2021

Keywords

  • Fixed effects
  • Integrated likelihood
  • Nonlinear models
  • Panel data

ASJC Scopus subject areas

  • Economics and Econometrics

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