EconBase
← All papers

Heterogeneous structural breaks in panel data models

Ryo Okui, Wendun Wang

arXiv 15 Jan 2018 · Econometrics · publishedJournal of Econometrics (2017) · 13 citations (OpenAlex)

arXiv:1801.04672 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper develops a new model and estimation procedure for panel data that allows us to identify heterogeneous structural breaks. We model individual heterogeneity using a grouped pattern. For each group, we allow common structural breaks in the coefficients. However, the number, timing, and size of these breaks can differ across groups. We develop a hybrid estimation procedure of the grouped fixed effects approach and adaptive group fused Lasso. We show that our method can consistently identify the latent group structure, detect structural breaks, and estimate the regression parameters. Monte Carlo results demonstrate the good performance of the proposed method in finite samples. An empirical application to the relationship between income and democracy illustrates the importance of considering heterogeneous structural breaks.

Citation extraction

41
references
103
in-text mentions
41
distinct cited
0
self-citations
17,157
main-text words

appendix boundary found by appendix_command · 81% 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
1B. H. Baltagi, Q. Feng, and C. Kao (2016) Estimation of heterogeneous panels with structural breaks1.000103100%
2L. Su, Z. Shi, and P. C. B. Phillips (2016) Identifying latent structures in panel data1.00064100%
3J. Qian and L. Su (2016) Shrinkage estimation of common breaks in panel data models via adaptive group fused lasso0.96118889%
4S. Bonhomme and E. Manresa (2015) Grouped patterns of heterogeneity in panel data0.96118689%
5J. Bai (2010) Common breaks in means and variances for panel data0.84333100%
6X. Lu and L. Su (2017) Determining the number of groups in latent panel structures with an application to income and democracy0.84333100%
7D. Acemoglu, S. Johnson, J. A. Robinson, and P. Yared (2008) Income and democracy0.81142100%
8T. Ando and J. Bai (2016) Panel data models with grouped factor structure under unknown group membership0.64422100%
9B. H. Baltagi, C. Kao, and L. Liu (2017) Estimation and identification of change points in panel models with nonstationary or stationary regressors and error term0.64422100%
10J. Hahn and H. R. Moon (2010) Panel data models with finite number of multiple equilibria0.64422100%

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
1Bi-integrative analysis of two-dimensional heterogeneous panel data model0.84333
2Robust Inference Methods for Latent Group Panel Models under Possible Group Non-Separation0.84333
3Panel Data Models with Time-Varying Latent Group Structures0.69361
4Incorporating Prior Knowledge of Latent Group Structure in Panel Data Models0.64422
5Low-rank Panel Quantile Regression: Estimation and Inference0.51121
6K-Means Panel Data Clustering in the Presence of Small Groups0.51121
7Inference methods for unit-specific coefficients in panel data models with latent group structure0.51121
8Convergence rate of estimators of clustered panel models with misclassification0.40511
9A Pairwise Strategic Network Formation Model with Group Heterogeneity: With an Application to International Travel0.40511
10Debiased Inference for Dynamic Nonlinear Panels with Multi-dimensional Heterogeneities0.40511