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Testing for Grouped Patterns in Panel Data Models

Antonio Raiola, Nazarii Salish

arXiv 26 Oct 2025 · Econometrics

arXiv:2510.22841 · PDF · Extracted main text

Abstract

While the literature on grouped patterns in panel data analysis has received significant attention, little to no results are available on testing for their presence. We propose using existing tools for testing slope homogeneity in panels for this purpose. We highlight the key advantages and limitations of the available testing frameworks under a sequence of doubly local alternatives, where slopes are divided into dominant and remainder groups, with the size of the remainder groups and the slopes differences shrinking at a certain rate as the sample size increases. A Monte Carlo study corroborate our theoretical findings.

Citation extraction

17
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36
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distinct cited
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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
1Lu, Xun and Su, Liangjun (2017) Determining the number of groups in latent panel structures with an application to income and democracy1.00064100%
2Pesaran, M Hashem and Yamagata, Takashi (2008) Testing slope homogeneity in large panels0.87452100%
3Su, Liangjun and Chen, Qihui (2013) Testing homogeneity in panel data models with interactive fixed effects0.87452100%
4Breitung, Jörg and Roling, Christoph and Salish, Nazarii (2016) Lagrange multiplier type tests for slope homogeneity in panel data models self0.81142100%
5Bonhomme, Stéphane and Manresa, Elena (2015) Grouped patterns of heterogeneity in panel data0.64422100%
6Su, Liangjun and Shi, Zhentao and Phillips, Peter CB (2016) Identifying latent structures in panel data0.64422100%
7Swamy, Paravastu AVB (1970) Efficient inference in a random coefficient regression model0.64422100%
8Akgun, Oguzhan and Okui, Ryo (2025) Robust Inference Methods for Latent Group Panel Models under Possible Group Non-Separation0.40511100%
9Breitung, Jörg and Salish, Nazarii (2021) Estimation of heterogeneous panels with systematic slope variations self0.40511100%
10Ando, Tomohiro and Bai, Jushan (2015) A simple new test for slope homogeneity in panel data models with interactive effects0.40511100%

Showing the top 10 of 17 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
1Robust Inference Methods for Latent Group Panel Models under Possible Group Non-Separation0.40511