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Kernel Estimation for Panel Data with Heterogeneous Dynamics

Ryo Okui, Takahide Yanagi

arXiv 24 Feb 2018 · Econometrics · publishedEconometrics Journal (2019) · 18 citations (OpenAlex)

arXiv:1802.08825 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes nonparametric kernel-smoothing estimation for panel data to examine the degree of heterogeneity across cross-sectional units. We first estimate the sample mean, autocovariances, and autocorrelations for each unit and then apply kernel smoothing to compute their density functions. The dependence of the kernel estimator on bandwidth makes asymptotic bias of very high order affect the required condition on the relative magnitudes of the cross-sectional sample size (N) and the time-series length (T). In particular, it makes the condition on N and T stronger and more complicated than those typically observed in the long-panel literature without kernel smoothing. We also consider a split-panel jackknife method to correct bias and construction of confidence intervals. An empirical application and Monte Carlo simulations illustrate our procedure in finite samples.

Citation extraction

37
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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
1R. Okui and T. Yanagi (2019) Panel data analysis with heterogeneous dynamics0.97916594%
2S. Calonico, M. D. Cattaneo, and M. H. Farrell (2018) On the effect of bias estimation on coverage accuracy in nonparametric inference0.96510490%
3K. Jochmans and M. Weidner (2019) Inference on a distribution from noisy draws0.874102100%
4G. Dhaene and K. Jochmans (2015) Split-panel jackknife estimation of fixed effects models0.87462100%
5M. J. Crucini, M. Shintani, and T. Tsuruga (2015) Noisy information, distance and law of one price dynamics across us cities0.87452100%
6Q. Li and J. S. Racine (2007) Nonparametric Econometrics: Theory and Practice0.7373367%
7A. F. Galvao and K. Kato (2014) Estimation and inference for linear panel data models under misspecification when both $n$ and $T$ are large0.64422100%
8Y.-J. Lee, R. Okui, and M. Shintani (2018) Asymptotic inference for dynamic panel estimators of infinite order autoregressive processes0.64422100%
9C. Hsiao, M. H. Pesaran, and A. K. Tahmiscioglu (1999) Bayes estimation of short-run coefficients in dynamic panel data models0.58531100%
10J. E. Anderson and E. Van Wincoop (2004) Trade costs0.51121100%

Showing the top 10 of 37 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
1Inference on Linear Regressions with Two-Way Unobserved Heterogeneity0.58531
2Debiased Inference for Dynamic Nonlinear Panels with Multi-dimensional Heterogeneities0.40511