Friday, May 8, 2020

Types Of Fixed Effects Model - 973 Words

The second approach exploits the panel data feature using fixed effects model to deal with the endogencity of body weight. There are two forms of fixed effects model: individual fixed effects model (Cawley 2004; Baum and Ford, 2004; Shimokawa, 20089 ) and family fixed effects model (Averett and Korenman, 19961 0 ; Baum and Ford, 2004). Fixed effects models are used to eliminate time-invariant heterogeneity. The individual fixed effects model assumes that individual-specific unobserved heterogeneity is time-invariant, thus by taking difference of the same individual s wage observations between two time periods, the unobserved variables drop out and a consistent OLS estimator can be obtained. The family fixed effects model instead†¦show more content†¦The model takes differences of the same individual s observations between two time periods, assuming that the common-unobserved 9 Shimokawa(2008) combine the individual fixed effects model with a Jagged measure of weight. 10 Averett and Korenman(l 996) using lagged values of weight, difference between siblings. 11 Due to data limitation, the married sibling s income information is not available in CHNS dataset. 5. Data 6.1 Data Description The China Health and Nutrition Survey (CHNS) aims to examine across space and time how the ways economic and social changes aftected a range of health behaviors in China (Popkin et al, 2010). The Cf-INS rounds have been completed in 1989, 1991, 1993, 1997, 2000, 2004, 2006, 2009, and 201 l. It is conducted as a joint project of the Carolina Population Center at the University of North Carolina al Chapel Hill and China s National Institute for Nutrition and Food Safety and the China Center for Disease Control and Prevention, by an international team ofresearchers whose backgrounds include nutrition, public health, economics, sociology, Chinese studies, and demography. A multistage, random cluster process was used to draw the sample in 9 provin ces12 and 3 municipal citics1 3 (Figure 2) that vary substantially in geography, economic development, public resources, and health indicators. Tt covers both urban and rural areas. 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