Description Usage Arguments Value
Recovers the individual fixed-effects by using the first-order condition for alpha from the untransformed log-likelihood function of the model assuming all other parameters are known. Altough, the variance of alpha is high for small sample sized date.
1 |
y |
is a n*t x 1 vector (response) |
x |
is a n*t x k matrix (explantatory variables) |
beta |
is a vector of explenatory coefficients. |
sigma_u |
is the variance of the stochastic inefficency. |
sigma_v |
is the variance of the random error. |
h |
are the values of the positive non-stochastic inefficency determinants. |
epsilon |
are the random errors substracted the positive non-stochastic inefficency determinants. |
N |
an optional integer specifying the total amount of panels in the data set. |
Time |
an optional integer specifying the amount of observations per panel. |
mu |
is the mean of a truncated normal distribution of the stochastic inefficencys. |
cumTime |
ia a vector of the cumulated times of the Time vector. It serves as an index for computation. |
Returns a fixed-effect for each panel as a vector (N x 1)
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