Robust centering in the fixed effect panel data model
In recent years, robust estimators for fixed effect panel data model have been developed to provide alternatives to the least square estimates in the presence of outliers. The robust adaptation involves transformation of data by the median instead of the mean in order to eliminate any unobserved eff...
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| Format: | Article |
| Language: | English |
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Pakistan Journal of Statistics
2015
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| Online Access: | http://psasir.upm.edu.my/id/eprint/46199/ http://psasir.upm.edu.my/id/eprint/46199/1/Robust%20centering%20in%20the%20fixed%20effect%20panel%20data%20model.pdf |
| _version_ | 1848850614913597440 |
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| author | Midi, Habshah Abu Bakar, Nor Mazlina |
| author_facet | Midi, Habshah Abu Bakar, Nor Mazlina |
| author_sort | Midi, Habshah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | In recent years, robust estimators for fixed effect panel data model have been developed to provide alternatives to the least square estimates in the presence of outliers. The robust adaptation involves transformation of data by the median instead of the mean in order to eliminate any unobserved effect. Median centering is chosen due to its robustness, simple derivation and possesses min max property. However, the procedure introduces non-linearity in the data and causes some robust estimators to lose their regression equivariance property. This study proposed MM-centering to provide robust solutions to the Within Group parameter estimates. The numerical results indicate that the proposed methods are more efficient than the existing method. |
| first_indexed | 2025-11-15T10:09:06Z |
| format | Article |
| id | upm-46199 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:09:06Z |
| publishDate | 2015 |
| publisher | Pakistan Journal of Statistics |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-461992022-07-08T23:45:37Z http://psasir.upm.edu.my/id/eprint/46199/ Robust centering in the fixed effect panel data model Midi, Habshah Abu Bakar, Nor Mazlina In recent years, robust estimators for fixed effect panel data model have been developed to provide alternatives to the least square estimates in the presence of outliers. The robust adaptation involves transformation of data by the median instead of the mean in order to eliminate any unobserved effect. Median centering is chosen due to its robustness, simple derivation and possesses min max property. However, the procedure introduces non-linearity in the data and causes some robust estimators to lose their regression equivariance property. This study proposed MM-centering to provide robust solutions to the Within Group parameter estimates. The numerical results indicate that the proposed methods are more efficient than the existing method. Pakistan Journal of Statistics 2015 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/46199/1/Robust%20centering%20in%20the%20fixed%20effect%20panel%20data%20model.pdf Midi, Habshah and Abu Bakar, Nor Mazlina (2015) Robust centering in the fixed effect panel data model. Pakistan Journal of Statistics, 31 (1). pp. 33-48. ISSN 1012-9367 https://www.researchgate.net/publication/281786694_Robust_centering_in_the_fixed_effect_panel_data_model |
| spellingShingle | Midi, Habshah Abu Bakar, Nor Mazlina Robust centering in the fixed effect panel data model |
| title | Robust centering in the fixed effect panel data model |
| title_full | Robust centering in the fixed effect panel data model |
| title_fullStr | Robust centering in the fixed effect panel data model |
| title_full_unstemmed | Robust centering in the fixed effect panel data model |
| title_short | Robust centering in the fixed effect panel data model |
| title_sort | robust centering in the fixed effect panel data model |
| url | http://psasir.upm.edu.my/id/eprint/46199/ http://psasir.upm.edu.my/id/eprint/46199/ http://psasir.upm.edu.my/id/eprint/46199/1/Robust%20centering%20in%20the%20fixed%20effect%20panel%20data%20model.pdf |