Testing the Presence of Outliers in Regression Models

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 2022
Volume: 84
Issue: 6
Pages: 1452-1484

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We propose two sets of tests for the overall presence of outliers in regression models. First, ‘simple’ tests on whether the proportion and the number of detected outliers deviate from their expected values. Second, ‘scaling’ tests on whether the proportion of outliers decreases with the cut‐off used to detect outliers. We apply our tests to a panel difference‐in‐differences model of transport CO2 emissions in response to the introduction of North America's first major carbon tax. Our tests show the presence of significant outliers in the un‐taxed control group, which results in an overestimation of the estimated impacts of the tax.

Technical Details

RePEc Handle
repec:bla:obuest:v:84:y:2022:i:6:p:1452-1484
Journal Field
General
Author Count
2
Added to Database
2026-01-29