Before revision: Empirical economists are often deterred from the application of binary choice models with fixed effects mainly for two reasons: the incidental parameter bias and the computational challenge in (moderately ) large data sets. We show how both issues can be alleviated in the context of binary choice models with individual and time fixed effects .
After revision: Empirical economists are often deterred from the application of binary choice models with fixed effects mainly for two reasons: the incidental parameter bias and the computational challenge even in moderately large panels. Using the example of binary choice models with individual and time fixed effects .