▲ 13 r/econometrics
Fixed Effects Model
Am I correct in my understanding that FEMs have low statistical power and therefore we cannot assume causality, only association? And to assume causality, we have to make sure it is not reverse causality? Not really sure about the strengths of the FEM as all I read seems to point to the low statistical power and potential for bias estimates
u/AgitatedHuckleberry8 — 11 days ago