This is the fifth in a series of lectures, which, if linked together in the book, could be entitled "Practical Regression." Goal score in addition to the theoretical content of most statistics texts with practical advice based on nearly three decades of experience of the author, along with more than a hundred years experience of colleagues who offered advice. As the title "Practical Regression" suggests, these notes guide performing the regression in practice. This technical note addresses the fixed effect models. Although a single example, the note shows how to delete a variable bias can plague cross-sectional estimates of regression and how to focus on intra-("inside") changes over time may allow for identification of the regression coefficients, free from potential bias. The note demontrates mathematical principles behind the fixed effects model, and also explains why, in some cases, it may be preferable not to include fixed effects. "Hide
by David Dranove Source: Kellogg School Management 10 pages. Publication Date: June 11, 2012. Prod. #: KEL639-PDF-ENG