Magazzini, Laura; Calzolari, Giorgio - Dipartimento di Scienze Economiche, Facoltà di Economia - 2012
One of the major virtues of panel data models is the possibility to control for unobserved and unobservable heterogeneity at the unit (individual, firm, sector...) level, even when this is correlated with the variables included on the right hand side of the equation. By assuming an additive...