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ERIC Number: EJ1137577
Record Type: Journal
Publication Date: 2017-Jan
Pages: 24
Abstractor: As Provided
ISSN: ISSN-0049-1241
What You Can--and Can't--Do with Three-Wave Panel Data
Vaisey, Stephen; Miles, Andrew
Sociological Methods & Research, v46 n1 p44-67 Jan 2017
The recent change in the general social survey (GSS) to a rotating panel design is a landmark development for social scientists. Sociological methodologists have argued that fixed-effects (FE) models are generally the best starting point for analyzing panel data because they allow analysts to control for unobserved time-constant heterogeneity. We review these treatments and demonstrate the advantages of FE models in the context of the GSS. We also show, however, that FE models have two rarely tested assumptions that can seriously bias parameter estimates when violated. We provide simple tests for these assumptions. We further demonstrate that FE models are extremely sensitive to the correct specification of temporal lags. We provide a simulation and a proof to show that the use of incorrect lags in FE models can lead to coefficients that are the opposite sign of the true parameter values.
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Assessments and Surveys: General Social Survey
Grant or Contract Numbers: N/A