Functional coefficient regression models with time trend

A-Tier
Journal: Journal of Econometrics
Year: 2012
Volume: 170
Issue: 1
Pages: 15-31

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We consider the problem of estimating a varying coefficient regression model when regressors include a time trend. We show that the commonly used local constant kernel estimation method leads to an inconsistent estimation result, while a local polynomial estimator yields a consistent estimation result. We establish the asymptotic normality result for the proposed estimator. We also provide asymptotic analysis of the data-driven (least squares cross validation) method of selecting the smoothing parameters. In addition, we consider a partially linear time trend model and establish the asymptotic distribution of our proposed estimator. Two test statistics are proposed to test the null hypotheses of a linear and of a partially linear time trend models. Simulations are reported to examine the finite sample performances of the proposed estimators and the test statistics.

Technical Details

RePEc Handle
repec:eee:econom:v:170:y:2012:i:1:p:15-31
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25