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Two-way Clustering Robust Variance Estimator in Quantile Regression Models

Ulrich Hounyo, Jiahao Lin

arXiv 18 Feb 2026 · Econometrics

arXiv:2602.16376 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study inference for linear quantile regression with two-way clustered data. Using a separately exchangeable array framework and a projection decomposition of the quantile score, we characterize regime-dependent convergence rates and establish a self-normalized Gaussian approximation. We propose a two-way cluster-robust sandwich variance estimator with a kernel-based density “bread” and a projection-matched “meat”, and prove consistency and validity of inference in Gaussian regimes. We also show an impossibility result for uniform inference in a non-Gaussian interaction regime.

Citation extraction

26
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46
in-text mentions
26
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
1Menzel, Konrad (2021) Bootstrap with cluster-dependence in two or more dimensions0.9285380%
2Kato, Kengo (2012) Asymptotic normality of Powell’s kernel estimator0.73732100%
3Cameron, A Colin and Gelbach, Jonah B and Miller, Douglas L (2011) Robust inference with multiway clustering0.64422100%
4Chiang, Harold D. and Hansen, Bruce E. and Sasaki, Yuya (2024) Standard Errors for Two-Way Clustering with Serially Correlated Time Effects0.64422100%
5Davezies, Laurent and D’Haultfœuille, Xavier and Guyonvarch, Yannick (2021) Empirical process results for exchangeable arrays0.64422100%
6Galvao, Antonio F and Yoon, Jungmo (2024) Hac covariance matrix estimation in quantile regression0.64422100%
7Hagemann, Andreas (2017) Cluster-robust bootstrap inference in quantile regression models0.64422100%
8MacKinnon, James G and Nielsen, Morten Ørregaard and Webb, Matthew D (2021) Wild bootstrap and asymptotic inference with multiway clustering0.64422100%
9Chiang, Harold D and Kato, Ryutah and Sasaki, Yuya (2024) Extremal quantiles of intermediate orders under two-way clustering0.58531100%
10Davezies, Laurent and D'Haultfoeuille, Xavier and Guyonvarch, Yannick (2018) Asymptotic results under multiway clustering0.58531100%

Showing the top 10 of 26 scored citations.