Estimation of panel group structure models with structural breaks in group memberships and coefficients

A-Tier
Journal: Journal of Econometrics
Year: 2023
Volume: 233
Issue: 1
Pages: 45-65

Authors (3)

Lumsdaine, Robin L. (not in RePEc) Okui, Ryo Wang, Wendun (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

This paper considers linear panel data models with a grouped pattern of heterogeneity when the latent group membership structure and/or the values of slope coefficients change at a break point. We propose a least squares approach to jointly estimate the break point, group membership structure, and coefficients. The proposed estimators are consistent, and the asymptotic distribution of the coefficient estimators is identical to that under known break point and group structure even when the cross-sectional sample size is much larger than the length of time series. Monte Carlo simulations and an empirical example illustrate the use of the approach and associated inference.

Technical Details

RePEc Handle
repec:eee:econom:v:233:y:2023:i:1:p:45-65
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-26