Lee, Myoung-jae; Kondo, Yasushi - International Conferences on Panel Data - 2002
In a "fixed-effect" panel data model with a nonparametric regression function \rho(x_{it}), the usual first-differencing yields a nonparametric regression function \mu(x_{it},x_{i,t+1}) with the restriction \mu(x_{it},x_{i,t+1}) = \rho(x_{i,t+1}) - \rho(x_{it}). Although \mu(x_{it},x_{i,t+1})...
