Identifying Fixed-effects Models with Heterogeneous Coefficients

Abstract

This review provides an introduction to identification and estimation methods for fixed-effects models with heterogeneous coefficients, which require identification strategies that are notably different from those for standard fixed-effects models. The strategies imply consistent estimation methods for the parameters of interest, which are also different from those used in standard fixed-effects models. As an introductory review, this work defers detailed implementation procedures for the estimation methods to future studies.