Fixed-Effects Models

Coercive parent-child interaction models posit that an escalating cycle of negative, bidirectional interchanges influences the development of boys' externalizing problems and caregivers' maladaptive parenting over time. However, longitudinal studies examining this hypothesis have been unable to rule out the possibility that between-individual factors account for bidirectional associations between child externalizing problems and maladaptive parenting. Using a longitudinal sample of boys (N = 503) repeatedly assessed eight times across 6-month intervals in childhood (in a range between 6 and 13 years), the current study is the first to use novel within-individual change (fixed effects) models to examine whether parents tend to increase their use of maladaptive parenting strategies following an increase in their son's externalizing problems, or vice versa. These bidirectional associations were examined using multiple facets of externalizing problems (i.e., interpersonal ca...

This study investigates the relationship between exports, foreign direct investments (FDI) and economic growth in five Eurozone countries (Greece, Portugal, Ireland, Spain, and Italy) using panel data for the period 1970 to 2011. The panel data causality results revealed that there is bidirectional causality between exports and economic development, while there is no causality between economic growth and FDI nor between FDI and exports.

Bu çalışmada, BİST'te hisse senedi işlem gören kimya sektöründe faliyette bulunan işletmelerin sermaye yapısı kararlarını etkileyen faktörlerin belirlenmesi amaçlanmıştır. Çalışma 2008-2016 yıllarını kapsamakta olup, bu döneme ait yıl sonu finansal tablolarından derlenen finansal oranlar kullanılmaktadır. Çalışmada üç farklı model panel veri analizi le sınanmıştır. Oluşturulan modellerdeki bağımlı ve bağımsız değişkenler ise; finansal kaldıraç oranları, büyüklük, borç dışı vergi kalkanı, karlılık ve likidite oranıdır. Analiz sonucunda toplam borçlar/ toplam varlıklar oranıyla hesaplanan kaldıraç oranı ile likidite oranı arasında pozitif ilişki tespit edilmiş, diğer tüm değişkenler arasında ise negatif ilişkiye rastlanılmıştır. Bu sonuçlar göstermektedir ki; kimya sektöründe hem dengeleme hem de finansman hiyerarşisi teorisinin geçerli olduğunu göstermektedir. Anahtar Kelimeler: Sermaye yapısı, dengeleme teorisi, finansman teorisi, kimya sektörü ABSTRACT The main purpose of this study to determinates the factor affecting capital structure decisions of chemical sector firms traded in the stocks ISE. The study covers the years 2008-2016 and financial ratios compiled from year-end financial statements are used for the used period. Three different models of panel data analysis have been tested in the study. The dependent and independent variables in the generated models are; financial leverage ratios, size, non-debt tax shield, profitability and liquidity ratio. As a result of the analysis, it is found that there is no significant relationship between the leverage ratio which calculated by the ratio of total debts / total assets and the liquidity ratio, and a significant relationship is found among all other variables. These results show that; both trade-off and financial hierarchy theory is valid in the chemical sector.

This study aims to examine and analyze the effect of GDP per capita, Inequal distribution of income, unemployment, population growth and government spending on education on poverty in five ASEAN countries. This study uses panel data regression equation using the Fixed Effect Model (FEM). The results showed that the effect of GDP per capita, Inequal distribution of income, unemployment, population growth and government spending on education affects simultaneously on poverty. While partially each independent variable has a different effect on poverty in five ASEAN countries.

The financial sector in Jordan is considered one of the most important sectors as other economic sectors are
fundamentally dependent on access to financial services. The financial sector in Jordan witnessed major
developments and reforms over the last two decades. The adopted reforms have had some liberalization
components and deregulation measures. Net Interest Margin (NIM) is an important tool for tracking profitability
of commercial banks. This paper will try to identify the determinants of NIM for panel data of thirteen Jordanian
commercial banks during the period (1995-2015). The study has applied Ho & Saunders, (1981) and the
extension proposed by Maudos &De Guevara, (2004) using the econometric methods of OLS, fixed and random
effects models. The study found that bank specific characteristics explain, to a greater extent, the dynamics of
NIM at commercial banks. Macroeconomic factor, represented by the CPIhad a low capacity in explaining NIM
variations. Also, the results indicated that the deregulation process and the enhancement of the regulatory
frameworks have contributed in the adherence to market powers. Moreover, quality of management has an impact
on NIM through decreasing incurred costs. The results did not find evidence to support the belief that foreign
ownership has enhanced the institutional quality of banks.

In the last three decades or more, labour share has fallen and income inequality has risen substantially across the globe (Onaran and Galanis, 2012; Stockhammer, 2013). Wage share or labour share is the total wage income of all the workers as the ratio of Gross Domestic Product (GDP). This does not mean that real wages are falling, rather that real wages have increased at a slower pace than productivity, which is the output per labour. Of course there have been cases where real wages have fallen, particularly during the global financial crisis 2007-2009.

Since the 1980s, the world has been reshaped by the transformation in globalisation, financialisation, technological change, welfare state retrenchment and labour market institutions. So what determines income inequality in OECD countries? To answer this question, this study will be referring to the cross-section dataset of 19 advanced OECD countries from 1990 to 2007.

A strategy for adaptive control and energetic optimization of aerobic fermentors was implemented, with both air flow and agitation speed as manipulated variables. This strategy is separable in its components: control, optimization, estimation. We optimized parameter’s estimation (from the usual KLa correlation) using sinusoidal excitation of air flow and agitation speed. We have implemented parameter’s estimation trough recursive least squares algorithm with forgetting factor. We carried separate essays on control, optimization and estimation algorithms. We carried our essays using an original computational simulation environment, with noise and delay generating facilities for data sampling and filtering.

Our results show the convergence and robustness of the estimation algorithm used, improved with use of both forgetting factor and KLa dead-band facilities. Control algorithm used in our work compares favorably with PID using the integrated area criteria for deviation between oxygen molarity and critical molarity (set point). Optimization algorithm clearly reduces energetic consumption, respecting critical molarity. Integration of control, optimization and adaptive algorithms was implemented, but future work is needed for stability. Methods were defined and implemented for stability improvement. We have implemented data acquisition and computer manipulation of air flow and agitation speed for actual fermentors.

In this study, we have endeavored to explain China's trade pattern with OPEC member countries by employing gravity model over the period 1990-2016. The estimation results demonstrate that the gravity equation fits the data pragmatically. China was the first biggest oil importer worldwide with about 73 per cent of her oil coming from OPEC member countries. In fact, energy can be considered as the most traded commodity and also the core reason for the trade volume growth between China and the OPEC member countries in last two decades. We have confirmed that China " s bilateral trade with OPEC members positively impacts on GDP, income (GDP per capita), trade openness in China and the WTO member countries in OPEC. While negatively influence on distance (trade cost) and supports Linder hypothesis. Depreciation in bilateral exchange rates also negatively influence on China " s bilateral trade with OPEC. Contribution/ Originality: To the best of the authors " knowledge, this study is the first attempt to examine the China " s trade pattern with 14 OPEC member countries aver the period of 1990-2016 through gravity approach by estimation technique OLS and time fixed effects.

This paper estimates the effect of in-school feeding programs on academic performance measured by standardized test scoresand dropouts with a difference in difference (DID) model which exploits the change over time in the supply of in-school feeding programs during the end of the nineties. Our findings suggest that the program has successfully targeted the most disadvantaged schools. However, only partial improvement in school performance has been found. Language test scores were the only ones to show a statistically significant improvement, with no noticeable effects reported in our two other measures of school performance, namely Math scores and dropouts. The limited information contained in the survey on which our database was built, prevented further investigation. Improving the survey and collecting information regarding the nutritious content of meals would be desirable for the better understanding and targeting of future in-school feeding programs. JEL Classification Codes: H...

Kriminalitas adalah suatu perbuatan menyimpang yang dapat dihukum sesuai undang-undang berlaku. Kriminalitas sering kali terjadi di Indonesia, bahkan hingga saat ini berita yang disampaikan baik dari media cetak maupun elektronik selalu berkaitan dengan kejahatan kriminalitas. Setiap individu pada dasarnya dapat berperan sebagai pelaku kriminal karena dipengaruhi faktor-faktor tertentu. Dalam rangka meminimalisir jumlah kejahatan kriminalitas di Indonesia, maka dibutuhkan upaya seperti memberikan perhatian khusus atau tindakan langsung terhadap faktor-faktor yang dapat mempengaruhinya. Oleh karena itu, tujuan penelitian ini dilakukan yaitu untuk melihat lebih lanjut terkait faktor-faktor apa saja yang dapat mempengaruhi jumlah kejahatan kriminalitas di Indonesia. Penelitian menerapkan metode analisis regresi data panel, dimana struktur datanya menggabungkan data cross section dengan data time series. Regresi data panel memiliki tiga estimasi model yakni Common Effect Model, Fixed Effect Model dan Random Effect Model. Penelitian menggunakan satu variabel dependen, yaitu data Jumlah Kejahatan Kriminalitas di Indonesia (crime total) serta enam variabel independen yang terdiri dari Tingkat Pengangguran Terbuka, Persentase Penduduk Miskin, Upah Minimum Provinsi, Produk Domestik Regional Bruto Perkapita, Rata-rata Lama Sekolah dan Jumlah Penduduk. Runtun waktu yang digunakan yakni dari tahun 2015-2019. Hasil penelitian menunjukkan bahwa model regresi data panel yang paling tepat ialah Fixed Effect Model (FEM) dengan efek individu dan waktu (two-ways). Dari keenam variabel independen, diketahui variabel Persentase Penduduk Miskin, Produk Domestik Regional Bruto Perkapita, Rata-rata Lama Sekolah dan Jumlah Penduduk secara signifikan dapat mempengaruhi Jumlah Kejahatan Kriminalitas di Indonesia.

¿Cómo puede explicarse que algunas circunscripciones subnacionales tengan mayor fragmentación de su sistema de partidos respecto a otras? De acuerdo a la literatura especializada, la variación en la fragmentación se explica por las instituciones electorales o la diversidad social; no obstante, estas explicaciones no son suficientes cuando se observa a los municipios mexicanos en los últimos 25 años. La propuesta teórica de esta investigación plantea que, además de factores institucionales y sociológicos, la fragmentación de sistemas de partidos subnacionales, se explica por el cálculo que hacen los dirigentes partidistas respecto al beneficio esperado de gobernar una circunscripción subnacional y la expectativa de ganar la elección. Considerando una base de datos inédita de tipo panel -creada por el autor para esta investigación- con elecciones municipales desde la década de 1990, y empleando una regresión múltiple con efectos fijos, la evidencia empírica es consistente con la hipótesis principal: existe una relación no lineal en forma de U invertida entre el presupuesto de egresos y el NEP municipal, de forma que los municipios más fragmentados son aquellos con valores intermedios de recursos. Los resultados son consistentes en dos pruebas adicionales: un diseño cuasi-experimental con Pueblos Mágicos y tres estudios de caso a profundidad.

Income inequality is a growing problem worldwide. While population-adjusted between-country inequality is declining, within-country inequality is increasing (Milanovic 2012). The causes of this rise in inequality are still poorly understood. Corruption may increase inequality by giving rent-seeking advantages to those who are already in power (Uslaner 2008). However, corruption could also reduce inequality by encouraging redistribution (Alesina and Angeletos 2005). Most  studies of the relationship between corruption and inequality in the literature use the Gini coefficient; I consider the Gini coefficient to be too coarse, measuring distribution across the entire population rather than concentration among the wealthy and powerful. In this study I use instead the income shares of the top 1%, 0.1%, and 0.01% from the World Top Incomes database (Alvaredo et al. 2014). To my knowledge, no other papers in the literature have used the top 0.01% income share to study the relationship between inequality and corruption.
If corruption leads to inequality and inequality also leads to corruption, the result is a positive feedback loop, what Uslaner (2008) calls the 'inequality trap'. The primary purpose of this study is to test whether there is evidence of this hypothesized inequality trap.
I used the World Bank World Governance Indicators (WGI) measure 'control of corruption' as the measure of corruption. Applying fixed-effects models I find a strong and statistically robust relationship, with less corruption associated with less inequality. This effect retains roughly the same magnitude when controlling for many other variables that would be expected to affect income distribution (Piketty 2014), including GDP per capita, GDP growth, population growth, employment, and inflation. This suggests there may be a causal relationship between corruption and inequality.
Using Granger causality tests (similar to methods used by Clarke, Roy, and Chen (2012)), I attempt to determine the direction of this causality. Contrary to Uslaner's hypothesis of an 'inequality trap', I did not find any evidence of Granger causality between inequality and corruption in either direction. However, due to the low statistical power of Granger causality tests, especially on short unbalanced panels, these results are inconclusive.
In conclusion, higher corruption is associated with higher inequality, but the direction of causation remains unclear.

The purpose of this project paper is to report the implementation of the presented statistical models and econometric methods for panel data. For this project, data of the U.S. Census Bureau was used to build a panel for all U.S. counties respective all U.S. states. Hausman-tests were conducted and Fixed-Effects Models as well as Random-Effects Models were estimated in order to achieve meaningful results. Ambiguous findings were obtained regarding the different effects within the models.

Changes in international accounting standards impact the evaluating methods of banking-system risks. Due to new IFRS 9 implementations, the credit risk measurement will be accomplished by the derivation of PD (probability of default). Author estimate PD using a continuous time logistic technique, instrumenting for the bankruptcy likelihood in Russian banks for the 2009-2016 period. Preliminary results show significant response for banks’ specific ratios and financial statement factors on bankruptcy on average, consistent with existing literature, but lower response to different macroeconomic conditions. Moreover, after testing predictivity of the current model, we found out high accuracy between actual and predicted coefficients. Thus, we can extend this research to inclusive parts of the economic world.

In this study, we have endeavored to explain China's trade pattern with OPEC member countries by employing gravity model over the period 1990-2016. The estimation results demonstrate that the gravity equation fits the data pragmatically. China was the first biggest oil importer worldwide with about 73 per cent of her oil coming from OPEC member countries. In fact, energy can be considered as the most traded commodity and also the core reason for the trade volume growth between China and the OPEC member countries in last two decades. We have confirmed that China " s bilateral trade with OPEC members positively impacts on GDP, income (GDP per capita), trade openness in China and the WTO member countries in OPEC. While negatively influence on distance (trade cost) and supports Linder hypothesis. Depreciation in bilateral exchange rates also negatively influence on China " s bilateral trade with OPEC. Contribution/ Originality: To the best of the authors " knowledge, ...

This study explores how institutional grants influence student cohorts’ six-year graduation rates across four-year U.S. universities during and before the Great Recession, using panel data from the Integrated Postsecondary Education Data System (N = 2,632). Fixed effect, random effect, and ordinary least square models are employed to examine the impacts of the average amount of institutional grants received per student on cohort graduation rates.  On the institutional level, our models suggest the directions, magnitudes, and statistical significances of the relationship between institutional grants and graduation rates vary substantially by school sectors, after disentangling the effect of other aid packages, institutional characteristics, student demographics, and other financial and academic factors. The results strongly against a myth that suggests institutional grants impede graduation rate. The findings show an increase in the average institutional grants improves graduation rates in public universities, but the association is uncertain for private colleges. The ambiguity in the private sector can be partially explained by unobserved heterogeneity—especially students’ household socio-economic backgrounds.

In this paper, we examine the donor motives of DAC-donors that influence the allocation of Official Development Assistance (ODA) to agricultural development in Sub-Saharan Africa, through the application of fixed effects OLS-regression analysis. The study analyses aid allocation patterns for 22 DAC-donor countries to 49 Sub-Saharan African recipient countries from 2005 to 2013. The statistical results show that the agricultural sector's share of the GDP in the recipient country, the agricultural productivity in the recipient country and the size of the recipient country's rural population positively influence how much of the total ODA that is allocated to agricultural development. Moreover, the study also finds that the allocation of aid to aid to agriculture is negatively correlated with large exports from a DAC-donor country to Sub-Saharan Africa, and positively correlated with imports. This study contributes to the understanding of donor behaviour in the aid allocation process, and in particular the allocation of aid to agricultural development in Sub-Saharan Africa, which is a region that paradoxically has a large net food import bill albeit the good pre-conditions for high agricultural productivity.

This study aims to examine and analyze the effect of GDP per capita, Inequal distribution of income, unemployment, population growth and government spending on education on poverty in five ASEAN countries. This study uses panel data regression equation using the Fixed Effect Model (FEM). The results showed that the effect of GDP per capita, Inequal distribution of income, unemployment, population growth and government spending on education affects simultaneously on poverty. While partially each independent variable have different effect on poverty in five ASEAN countries.

ABSTRACT We investigate the degree to which neighborhood income composition affects the subsequent income of individual male residents, and test the degree to which these effects are characterized by nonlinear, threshold-like relationships. We specify a fixed-effects model to reduce potential bias arising from unmeasured individual characteristics affecting neighborhood selection and income. We employ annual data on 124 000 working-age males residing in Stockholm over the 1991-2006 period to estimate parameters for innovative variables measuring the sequence, duration, and intensity of neighborhood exposures. We find that two thresholds—one above 20 per cent and the other above 40 per cent—best describe the strong inverse relationship between consistent exposure to higher percentages of low-income male neighbors and subsequent earnings of individual male residents. We draw implications for potential causal mechanisms behind this relationship and formulating public policy towards places of concentrated disadvantage.

Fixed effects regressions are commonly used by social scientists to identify causality. However, several criticisms against the fixed effects estimator emerged in recent years. In addition to confounding factors that are associated with time variant covariates, fixed effects can lead to an improper aggregation of heterogeneous effects. In the present chapter, we discuss the problem that pertains to the fixed effect estimator and show techniques that do not suffer from this source of bias. We also illustrate the problem with empirical analysis of Chilean students for the period time from 2007 to 2013. On the basis of the theoretical framework developed in the chapter and empirical findings, we suggest some implications for research in social sciences.

In this study, the relationship between R&D and growth is determined by the model which is produced according to Cobb Douglas production function. Data were analyzed between 10 largest EU countries and Turkey from 1996 to 2018. The econometric methods used in the analysis are fixed effects model, random effects model, GMM and system GMM. As a result, growth rate is most affected by government budget allocations for R&D. The increase in the government budget allocations for R&D increases the growth rate more than other variables.

A negative association between birth interval length and infant and child mortality has been consistently identified in modern developing countries. The reasons for this association are unclear, however. Leading hypotheses linking interval length to mortality fall into four broad categories—sibling competition, maternal depletion, infection transmission, or unobserved maternal factors—but none has received overwhelming support. Using data from Stockholm between 1878 and 1926, this study identifies trends in the relationship over time, controlling for unobserved maternal heterogeneity, and exploiting sibling deaths to better understand the mechanisms at work. Results show that the association disappeared over time as infectious disease mortality fell and that deaths of previous siblings during the postnatal period disproportionately tended to increase the risk of dying among index children born after short intervals. These findings strongly suggest the relationship is related to the transmission of disease between closely spaced siblings.

The article is devoted to the panel data modeling of the firm's investments depending on its market value and the size of fixed assets. The Grunfeld's investment data as provided in R package were used as the initial data. The data frame contains annual observations for 11 firms over 20 years. The main econometric models for panel data (pooled model, fixed effects model, random effects model) were estimated. To make choice the most effective specification of the model the character of effects was tested. The heterogeneity of firms was explained by individual random factors. The comparative analysis of parameters' estimates was performed using the basic panel data models and their optimal combination in the framework of combined assessment (forecasting). Weight coefficients of hybrid forecasts are assigned as directed by the combined model list in accordance with standard optimality requirements. It was shown that the results of the combined assessment coincided with the estimates of the random effects model.

In Britain, civil society organizations (CSOs) have garnered much praise for promoting interethnic friendships (IEF) and strengthening community cohesion. Yet, there is very little empirical evidence to suggest that participation in CSOs promotes ethnic minorities' IEF. Using nationally representative longitudinal (2011-2019) and cross-sectional (2010) data, this article explores the association between participation in CSOs and IEF formation among five British ethnic minority groups and analyses how this relationship is affected by the ethnic composition of CSOs. Overall, fixed effects models show that participation in CSOs only significantly promotes IEF for Indians. For other minority groups it has either no effect or, in the case of Pakistanis, significantly decreases IEF. Further analyses show that compared with ethnic minorities that do not participate in any CSOs, those who participate in mostly interethnic CSOs tend to have significantly more IEF, whereas those who participate in mostly co-ethnic CSOs tend to have significantly less IEF. Taken together , these findings suggest that the association between civic participation and ethnic minorities' IEF is much more

Why Has Participatory Budgeting Adoption Declined in Brazil? Participatory Budgeting (PB) is a policy innovation that originated in Brazil and is recognized worldwide by scholars and international organizations as an effective policy tool for directly involving the population in decisions about the local budget. Its diffusion in Brazil was strongly stimulated by the Workers' Party (Partido dos Trabalhadores PT), as a showcase of the "Petista Way of Governing". However, when the Party took the Federal Office, it abandoned PB as its main participatory policy priority. The motivation for such drastic change in policy preference remains unexplained, by both scholars and the Party itself. To understand the reasons for it, we present an original hypothesis, based on party adaptation to increasing fiscal and budgetary rigidity. To test this hypothesis, we use a mixed-methods approach, with qualitative data, such as interviews and newspapers content analysis, and quantitative ...

A partir de un análisis longitudinal transversal debatimos la relación entre apoyo al régimen y niveles futuros de democracia en América Latina. Los resultados muestran que los niveles de democracia poliárquica y liberal afectan negativamente el respaldo ciudadano al régimen, no a la inversa como proponen estudios anteriores. Esto podría explicarse por el desarrollo de una actitud crítica y exigente en la población que vive en países con mayores niveles de democracia.

Based on a longitudinal cross-sectional analysis we discuss the relation between regime support and future levels of democracy in Latin America. Our results show that levels of polyarchic and liberal democracy negatively affect citizen support for the regime, not the other way around as previous studies propose. This could be explained by the development of critical and demanding attitudes among the populace in countries with higher levels of democracy.

Fixed effects regressions are commonly used by social scientists to identify causality. However, several criticisms against the fixed effects estimator emerged in recent years. In addition to confounding factors that are associated with time variant covariates, fixed effects can lead to an improper aggregation of heterogeneous effects. In the present chapter, we discuss the problem that pertains to the fixed effect estimator and show techniques that do not suffer from this source of bias. We also illustrate the problem with empirical analysis of Chilean students for the period time from 2007 to 2013. On the basis of the theoretical framework developed in the chapter and empirical findings, we suggest some implications for research in social sciences.

Panel data analysis is common in the social sciences. Fixed effects models are a favorite among sociologists because they control for unobserved heterogeneity (unexplained variation) among cross-sectional units, but estimates are biased when there is unobserved heterogeneity in the underlying time trends. Twoway fixed effects models adjust for unobserved time heterogeneity but are inefficient, cannot include unitinvariant variables, and eliminate common trends: the portion of variance in a time-varying variable that is invariant across cross-sectional units. This article introduces a general panel model that can include unitinvariant variables, corrects for unobserved time heterogeneity, and provides the effect of common trends while also allowing for unobserved unit heterogeneity, time-varying coefficients, and time-invariant variables. One-way and two-way fixed effects models are shown to be restrictive forms of this general model. Other restrictive forms are also derived that offer all the usual advantages of one-way and two-way fixed effects models but account for unobserved time heterogeneity. The author uses the models to examine the increase in state incarceration rates between 1970 and 2015.

This article investigates the capitalization of farm subsidies in Italy by relying on a novel approach based on the Grouped Fixed Effect (GFE) estimator. This methodology allows us to account for the regional unobserved time-varying determinants of the Italian land values. Results show that the elasticity of land price with respect to coupled and decoupled subsidies is below one. Particularly, for the latter payments, the degree of capitalization declines with decreasing competition in farmland markets.