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Dynamic Panel Data Models with Irregular Spacing: With Applications to Early Childhood Development

Author

Listed:
  • Millimet, Daniel L.

    () (Southern Methodist University)

  • McDonough, Ian K.

    () (University of Nevada, Las Vegas)

Abstract

With the increased availability of longitudinal data, dynamic panel data models have become commonplace. Moreover, the properties of various estimators of such models are well known. However, we show that these estimators breakdown when the data are irregularly spaced along the time dimension. Unfortunately, this is an increasingly frequent occurrence as many longitudinal surveys are collected at non-uniform intervals and no solution is currently available when time-varying covariates are included in the model. In this paper, we propose several new estimators for dynamic panel data models when data are irregularly spaced and compare their finite sample performance to the naïve application of existing estimators. We illustrate the practical importance of this issue by turning to two applications on early childhood development.

Suggested Citation

  • Millimet, Daniel L. & McDonough, Ian K., 2013. "Dynamic Panel Data Models with Irregular Spacing: With Applications to Early Childhood Development," IZA Discussion Papers 7359, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7359
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    References listed on IDEAS

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    Cited by:

    1. Fortin, Bernard & Yazbeck, Myra, 2015. "Peer effects, fast food consumption and adolescent weight gain," Journal of Health Economics, Elsevier, vol. 42(C), pages 125-138.
    2. Dizioli, Allan & Pinheiro, Roberto, 2016. "Health insurance as a productive factor," Labour Economics, Elsevier, vol. 40(C), pages 1-24.
    3. Hendrik Thiel & Stephan L. Thomsen, 2015. "Individual Poverty Paths and the Stability of Control-Perception," SOEPpapers on Multidisciplinary Panel Data Research 794, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Ignace De Vos & Gerdie Everaert & Ilse Ruyssen, 2015. "Bootstrap-based bias correction and inference for dynamic panels with fixed effects," Stata Journal, StataCorp LP, vol. 15(4), pages 986-1018, December.
    5. Sasaki, Yuya & Xin, Yi, 2017. "Unequal spacing in dynamic panel data: Identification and estimation," Journal of Econometrics, Elsevier, vol. 196(2), pages 320-330.

    More about this item

    Keywords

    student achievement; interactive fixed effects; irregular spacing; panel data; obesity;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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