EconBase
← All papers

Inference in High Dimensional Panel Models with an Application to Gun Control

Alexandre Belloni, Victor Chernozhukov, Christian Hansen, Damian Kozbur

arXiv 24 Nov 2014 · Statistics — Methodology · publishedJournal of Business and Economic Statistics (2015) · 183 citations (OpenAlex)

arXiv:1411.6507 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We consider estimation and inference in panel data models with additive unobserved individual specific heterogeneity in a high dimensional setting. The setting allows the number of time varying regressors to be larger than the sample size. To make informative estimation and inference feasible, we require that the overall contribution of the time varying variables after eliminating the individual specific heterogeneity can be captured by a relatively small number of the available variables whose identities are unknown. This restriction allows the problem of estimation to proceed as a variable selection problem. Importantly, we treat the individual specific heterogeneity as fixed effects which allows this heterogeneity to be related to the observed time varying variables in an unspecified way and allows that this heterogeneity may be non-zero for all individuals. Within this framework, we provide procedures that give uniformly valid inference over a fixed subset of parameters in the canonical linear fixed effects model and over coefficients on a fixed vector of endogenous variables in panel data instrumental variables models with fixed effects and many instruments. An input to developing the properties of our proposed procedures is the use of a variant of the Lasso estimator that allows for a grouped data structure where data across groups are independent and dependence within groups is unrestricted. We provide formal conditions within this structure under which the proposed Lasso variant selects a sparse model with good approximation properties. We present simulation results in support of the theoretical developments and illustrate the use of the methods in an application aimed at estimating the effect of gun prevalence on crime rates.

Citation extraction

41
references
109
in-text mentions
41
distinct cited
4
self-citations
15,475
main-text words

appendix boundary found by appendix_command · 47% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Cook and Ludwig (2006) The social costs of gun ownership1.000273100%
2Belloni and Chernozhukov (2013) Least Squares After Model Selection in High-dimensional Sparse Models0.92843100%
3Belloni, Chernozhukov, and Hansen (2014) Inference on Treatment Effects After Selection Amongst High-Dimensional Controls self0.91613677%
4Belloni, Chen, Chernozhukov, and Hansen (2012) Sparse Models and Methods for Optimal Instruments with an Application to Eminent Domain0.90916675%
5Bickel, Ritov, and Tsybakov (2009) Simultaneous analysis of Lasso and Dantzig selector0.73732100%
6Arellano (1987) Computing Robust Standard Errors for Within-Groups Estimators0.73732100%
7Leeb and Pötscher (2008) Can one estimate the unconditional distribution of post-model-selection estimators?0.73732100%
8Jing, Shao, and Wang (2003) Self-normalized Cramr-type large deviations for independent random variables0.6443267%
9Belloni, Chernozhukov, and Hansen (2010) LASSO Methods for Gaussian Instrumental Variables Models self0.64422100%
10Bertrand, Duflo, and Mullainathan (2004) How Much Should We Trust Differences-in-Differences Estimates?0.64422100%

Showing the top 10 of 41 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1The Factor-Lasso and K-Step Bootstrap Approach for Inference in High-Dimensional Economic Applications1.000153
2Debiased Machine Learning for Unobserved Heterogeneity: High-Dimensional Panels and Measurement Error Models1.000134
3Inference in High-Dimensional Panel Models: Two-Way Dependence and Unobserved Heterogeneity0.95684
42206.121520.81142
5Double Machine Learning meets Panel Data - Promises, Pitfalls, and Potential Solutions0.81142
6lassopack: Model selection and prediction with regularized regression in Stata0.73732
7Dominant Drivers of National Inflation0.73732
8Forecasting Oil Consumption: The Statistical Review of World Energy Meets Machine Learning0.73732
9Many average partial effects: with an application to text regression0.64422
10Post-Selection Inference in Three-Dimensional Panel Data0.64422