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Time-Varying Linear Transformation Models with Fixed Effects and Endogeneity for Short Panels

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  • Irene Botosaru
  • Chris Muris
  • Senay Sokullu

Abstract

This paper considers a class of fixed-T nonlinear panel models with time-varying link function, fixed effects, and endogenous regressors. We establish sufficient conditions for the identification of the regression coefficients, the time-varying link function, the distribution of counterfactual outcomes, and certain (time-varying) average partial effects. We propose estimators for these objects and study their asymptotic properties. We show the relevance of our model by estimating the effect of teaching practices on student attainment as measured by test scores on standardized tests in mathematics and science. We use data from the Trends in International Mathematics and Science Study, and show that both traditional and modern teaching practices have positive effects of similar magnitudes on the performance of U.S. students on standardized tests in math and science.

Suggested Citation

  • Irene Botosaru & Chris Muris & Senay Sokullu, 2022. "Time-Varying Linear Transformation Models with Fixed Effects and Endogeneity for Short Panels," Department of Economics Working Papers 2022-01, McMaster University.
    • Handle: RePEc:mcm:deptwp:2022-01
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    References listed on IDEAS

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    Cited by:

    1. Cavit Pakel & Martin Weidner, 2023. "Bounds on Average Effects in Discrete Choice Panel Data Models," Papers 2309.09299, arXiv.org, revised Dec 2023.

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    More about this item

    Keywords

    Nonlinear panel model; fixed effects; endogeneity; partial effects; time-varying transformation; student achievement;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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