Before revision:  The method is based on a very flexible linear model for panel data, called factor-augmented regression model with both observable, latent common factors, as well as idiosyncratic components as high-dimensional covariate variables.
After revision:  The method is based on a flexible model for panel data, called factor-augmented regression model with both observable, latent common factors, as well as idiosyncratic components as high-dimensional covariate variables.