Pesaran, M. Hashem; Zhou, Qiankun - CESifo - 2014
This paper proposes the Fixed Effects Filtered (FEF) and Fixed Effects Filtered instrumental variable (FEF … FEF estimator is compared with the Fixed Effects Vector Decomposition (FEVD) estimator proposed by Plumper and Troeger … one of the time-invariant regressors is correlated with the fixed effects. Both FEF and FEF-IV estimators are shown to be …