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Higher-order Expansions and Inference for Panel Data Models

Jiti Gao, Bin Peng, Yayi Yan

arXiv 1 May 2022 · Econometrics · publishedJournal of the American Statistical Association (2023) · 4 citations (OpenAlex)

arXiv:2205.00577 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In this paper, we propose a simple inferential method for a wide class of panel data models with a focus on such cases that have both serial correlation and cross-sectional dependence. In order to establish an asymptotic theory to support the inferential method, we develop some new and useful higher-order expansions, such as Berry-Esseen bound and Edgeworth Expansion, under a set of simple and general conditions. We further demonstrate the usefulness of these theoretical results by explicitly investigating a panel data model with interactive effects which nests many traditional panel data models as special cases. Finally, we show the superiority of our approach over several natural competitors using extensive numerical studies.

Citation extraction

37
references
81
in-text mentions
37
distinct cited
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self-citations
10,049
main-text words

appendix boundary found by appendix_titled_section at “Appendix A” · 29% 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
1Bai, Choi \ Liao (2020) `Standard errors for panel data models with unknown clusters', Journal of Econometrics p. forthcoming0.9619489%
2Bai (2009) `Panel data models with interactive fixed effects', Econometrica 77(4), 1229–12790.92314379%
3Gon calves (2011) `The moving blocks bootstrap for panel linear regression models with individual fixed effects', Econometric Theory 27(5), 1048–1…0.8749367%
4Andrews (1991) `Heteroskedasticity and autocorrelation consistent covariance matrix estimation', Econometrica 59(3), 817–8580.73732100%
5Hedeker \ Gibbons (2006) Longitudinal Data Analysis, first edn, John Wiley & Sons, Inc0.73732100%
6Pesaran (2006) `Estimation and inference in large heterogeneous panels with a multifactor error structure', Econometrica 74(4), 967–10120.73732100%
7Shao (2010) `The dependent wild bootstrap', Journal of the American Statistical Association 105(489), 218–2350.64422100%
8Shergin (1980) `On the convergence rate in the central limit theorem for m-dependent random variables', Theory of Probability & Its Application…0.5113233%
9Chen, Fernández-Val \ Weidner (2021) `Nonlinear factor models for network and panel data', Journal of Econometrics 220(2), 296–3240.51121100%
10Pesaran (2021) `General diagnostic tests for cross section dependence in panels', Empirical Economics 60, 13–500.51121100%

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
12208.036320.40511