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Inference for Local Projections

Atsushi Inoue, Òscar Jordà, Guido M. Kuersteiner

arXiv 5 Jun 2023 · Econometrics · publishedEconometrics Journal (2025) · 4 citations (OpenAlex)

arXiv:2306.03073 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Inference for impulse responses estimated with local projections presents interesting challenges and opportunities. Analysts typically want to assess the precision of individual estimates, explore the dynamic evolution of the response over particular regions, and generally determine whether the impulse generates a response that is any different from the null of no effect. Each of these goals requires a different approach to inference. In this article, we provide an overview of results that have appeared in the literature in the past 20 years along with some new procedures that we introduce here.

Citation extraction

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appendix boundary found by appendix_command · 88% 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
1Jordà, Òscar (2005) Estimation and Inference of Impulse Responses by Local Projections0.84333100%
2Plagborg-Mller, Mikkel, & Wolf, Christian K (2021) Local projections and VARs estimate the same impulse responses0.84333100%
3Montiel-Olea, José Luis, & Plagborg-Mller, Mikkel (2019) Simultaneous Confidence Bands: Theory, Implementation, and an Application to SVARs0.81142100%
4Montiel Olea, José Luis, & Plagborg-Mller, Mikkel (2021) Local projection inference is simpler and more robust than you think0.69391100%
5Driscoll, John C., & Kraay, Aart C (1998) Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data0.64422100%
6Jordà, Òscar (2009) Simultaneous confidence regions for impulse responses0.64422100%
7Ferreira, Leonardo N., Miranda-Agrippino, Silvia, & Ricco, Giovanni (2023) Bayesian Local Projections0.64422100%
8Tanaka, Masahiro (2020) Bayesian inference of local projections with roughness penalty priors0.64422100%
9Xu, Ke-Li (2023) Local Projection Based Inference under General Conditions0.64422100%
10Plagborg-Mller, Mikkel, Montiel-Olea, José Luis, Qian, Eric, & Wolf,… (2024) Double Robustness of Local Projections and Some Unpleasant VARithmetic0.58531100%

Showing the top 10 of 63 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
1Simultaneous Inference Bands for Autocorrelations0.73732
2Clustered Local Projections for Time-Varying Models0.40511
3Quasi-Bayesian Local Projection Instrumental-Variables Method: Application to Renewable Energy and Electricity Prices0.40511
4Calibrated Horizon-Weighted Local Projection Designs for Markov Switchbacks0.40511