EconBase
← All papers

Regularized Quantile Regression with Interactive Fixed Effects

Junlong Feng

arXiv 1 Nov 2019 · Econometrics · publishedEconometric Theory (2023) · 6 citations (OpenAlex)

arXiv:1911.00166 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper studies large $N$ and large $T$ conditional quantile panel data models with interactive fixed effects. We propose a nuclear norm penalized estimator of the coefficients on the covariates and the low-rank matrix formed by the fixed effects. The estimator solves a convex minimization problem, not requiring pre-estimation of the (number of the) fixed effects. It also allows the number of covariates to grow slowly with $N$ and $T$. We derive an error bound on the estimator that holds uniformly in quantile level. The order of the bound implies uniform consistency of the estimator and is nearly optimal for the low-rank component. Given the error bound, we also propose a consistent estimator of the number of fixed effects at any quantile level. To derive the error bound, we develop new theoretical arguments under primitive assumptions and new results on random matrices that may be of independent interest. We demonstrate the performance of the estimator via Monte Carlo simulations.

Citation extraction

40
references
117
in-text mentions
40
distinct cited
0
self-citations
13,018
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
1Agarwal, Negahban, and Wainwright (2012) Noisy matrix decomposition via convex relaxation: Optimal rates in high dimensions1.00053100%
2Chernozhukov, Hansen, Liao, and Zhu (2019) Inference for heterogeneous effects using low-rank estimations1.00053100%
3Ando and Bai (2020) Quantile co-movement in financial markets: A panel quantile model with unobserved heterogeneity0.94419584%
4Candès and Recht (2009) Exact matrix completion via convex optimization0.9285380%
5Chen, Dolado, and Gonzalo (2020) Quantile factor models0.90912475%
6Athey, Bayati, Doudchenko, Imbens, and Khosravi (2017) Matrix completion methods for causal panel data models0.84333100%
7Moon and Weidner (2019) Nuclear norm regularized estimation of panel regression models0.81142100%
8Belloni, Chen, Padilla, and Wang (2019) High dimensional latent panel quantile regression with an application to asset pricing0.76911445%
9Candès, Li, Ma, and Wright (2011) Robust principal component analysis?0.7374350%
10Harding and Lamarche (2014) Estimating and testing a quantile regression model with interactive effects0.64422100%

Showing the top 10 of 40 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
1Low-rank Panel Quantile Regression: Estimation and Inference0.64432
2Detecting Latent Communities in Network Formation Models0.40511
3Panel Data Models with Time-Varying Latent Group Structures0.40511