compute_fes function

Fixed Effects Computation

This function is a helper for xvalidate that computes FEs using PPML First Order Conditions (FOCs).

compute_fes(
  y,
  fes,
  x,
  b,
  insample_obs = rep(1, n),
  onlymus = FALSE,
  tol = 1e-08,
  verbose = FALSE
)

Arguments

• y: Dependent variable (a vector).
• fes: List of fixed effects.
• x: Regressor matrix.
• b: A vector of coefficient estimates.
• insample_obs: Vector of observations used to estimate the b coefficients..
• onlymus: Logical. If TRUE, returns only the conditional means.
• tol: A tolerance parameter.
• verbose: Logical. If TRUE, prints messages to the console while evaluating.

Returns

If onlymus = TRUE, the vector of conditional means. Otherwise, a list with two elements:

• mu: conditional means.
• fe_values: fixed effects.