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Panel Data Analysis with Heterogeneous Dynamics

Ryo Okui, Takahide Yanagi

arXiv 26 Mar 2018 · Econometrics · publishedJournal of Econometrics (2019) · 27 citations (OpenAlex)

arXiv:1803.09452 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes a model-free approach to analyze panel data with heterogeneous dynamic structures across observational units. We first compute the sample mean, autocovariances, and autocorrelations for each unit, and then estimate the parameters of interest based on their empirical distributions. We then investigate the asymptotic properties of our estimators using double asymptotics and propose split-panel jackknife bias correction and inference based on the cross-sectional bootstrap. We illustrate the usefulness of our procedures by studying the deviation dynamics of the law of one price. Monte Carlo simulations confirm that the proposed bias correction is effective and yields valid inference in small samples.

Citation extraction

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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
1G. Dhaene and K. Jochmans (2015) Split-panel jackknife estimation of fixed effects models1.00093100%
2A. W. van der Vaart and J. A. Wellner (1996) Weak Convergence and Empirical Process0.9416383%
3M. J. Crucini, M. Shintani, and T. Tsuruga (2015) Noisy information, distance and law of one price dynamics across us cities0.87462100%
4A. F. Galvao and K. Kato (2014) Estimation and inference for linear panel data models under misspecification when both $n$ and $T$ are large0.7374350%
5J. Gil-Pelaez (1951) Note on the inversion theorem0.7373367%
6J. Wendel (1961) The non-absolute convergence of Gil-Pelaez' inversion integral0.7373367%
7M. H. Pesaran and R. Smith (1995) Estimating long-run relationships from dynamic heterogeneous panels0.73732100%
8A. W. van der Vaart (1998) Asymptotic Statistics0.6445240%
9I. Botosaru and Y. Sasaki (2018) Nonparametric heteroskedasticity in persistent panel processes: An application to earnings dynamics0.64422100%
10I. Fernández-Val and J. Lee (2013) Panel data models with nonadditive unobserved heterogeneity: Estimation and inference0.64422100%

Showing the top 10 of 59 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 A DISTRIBUTION FROM NOISY DRAWS0.84333
2Dynamic Heterogeneous Distribution Regression Panel Models, with an Application to Labor Income Processes$^*$0.64432
3Factor-Augmented Panel Regressions and Variance-Weighted Treatment Effects0.40511