Comparison of Estimation Methods for Random Coefficient Panel Data Model
Keywords:
Panel data model Random coefficient model Two-steps Aitken estimator Fixed effect estimator Group mean estimator Mean of means absolute errorAbstract
Panel data models are among the commonly used models in many fields. In this research we relied on the random coefficients model, which is characterized by the fact that the marginal tendencies are random and not fixed, meaning that they have a mean and a covariance matrix . The mean parameter is estimated by three methods are, two-steps Aitken estimator (2SAE) , fixed effect estimator (FE) and group mean estimator (GME). Using Mean of Means Absolute Error to compare between estimation methods, the simulation results showed that the (2SAE) estimator is the best estimation method for the random coefficient panel data model
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