Robust penalized quantile regression estimation for panel data

A-Tier
Journal: Journal of Econometrics
Year: 2010
Volume: 157
Issue: 2
Pages: 396-408

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates a class of penalized quantile regression estimators for panel data. The penalty serves to shrink a vector of individual specific effects toward a common value. The degree of this shrinkage is controlled by a tuning parameter [lambda]. It is shown that the class of estimators is asymptotically unbiased and Gaussian, when the individual effects are drawn from a class of zero-median distribution functions. The tuning parameter, [lambda], can thus be selected to minimize estimated asymptotic variance. Monte Carlo evidence reveals that the estimator can significantly reduce the variability of the fixed-effect version of the estimator without introducing bias.

Technical Details

RePEc Handle
repec:eee:econom:v:157:y:2010:i:2:p:396-408
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-25