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Nonparametric Quantile Regressions for Panel Data Models with Large T

Liang Chen

arXiv 5 Nov 2019 · Econometrics · 1 citations (OpenAlex)

arXiv:1911.01824 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper considers panel data models where the conditional quantiles of the dependent variables are additively separable as unknown functions of the regressors and the individual effects. We propose two estimators of the quantile partial effects while controlling for the individual heterogeneity. The first estimator is based on local linear quantile regressions, and the second is based on local linear smoothed quantile regressions, both of which are easy to compute in practice. Within the large T framework, we provide sufficient conditions under which the two estimators are shown to be asymptotically normally distributed. In particular, for the first estimator, it is shown that $N<<T^{2/(d+4)}$ is needed to ignore the incidental parameter biases, where $d$ is the dimension of the regressors. For the second estimator, we are able to derive the analytical expression of the asymptotic biases under the assumption that $N\approx Th^{d}$, where $h$ is the bandwidth parameter in local linear approximations. Our theoretical results provide the basis of using split-panel jackknife for bias corrections. A Monte Carlo simulation shows that the proposed estimators and the bias-correction method perform well in finite samples.

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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
1Galvao, A. F. and K. Kato (2016) Smoothed quantile regression for panel data0.9416483%
2Kato, K., A. F. Galvao, and G. V. Montes-Rojas (2012) Asymptotics for panel quantile regression models with individual effects0.8749367%
3Dhaene, G. and K. Jochmans (2015) Split-panel jackknife estimation of fixed-effect models0.64422100%
4Fan, J., T.-C. Hu, and Y. K. Truong (1994) Robust non-parametric function estimation0.64422100%
5Fernández-Val, I. and M. Weidner (2018) Fixed effects estimation of large-T panel data models0.64422100%
6Hahn, J. and W. Newey (2004) Jackknife and analytical bias reduction for nonlinear panel models0.64422100%
7Horowitz, J. L (1998) Bootstrap methods for median regression models0.5112250%
8Chernozhukov, V., I. Fernández-Val, J. Hahn, and W. Newey (2013) Average and quantile effects in nonseparable panel models0.51121100%
9Evdokimov, K (2010) Identification and estimation of a nonparametric panel data model with unobserved heterogeneity0.51121100%
10Altonji, J. G. and R. L. Matzkin (2005) Cross section and panel data estimators for nonseparable models with endogenous regressors0.40511100%

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Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Functional-Coefficient Quantile Regression for Panel Data with Latent Group Structure0.84353