Monotonicity in estimating multiple structural breaks

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 257
Issue: C

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We propose a monotonicity property for methods of estimating multiple structural breaks in linear regressions. A procedure with such a property yields a sequence of monotonically increasing sets of estimated break dates. Due to the uncertainty about the true number of breaks in finite samples, a monotone procedure offers a ranking of breaks from the least uncertain to the most. We propose a new method that imposes monotonicity. Monte Carlo simulations show that the proposed procedure works well in finite samples. We also apply the procedure to a study of the structural changes in the Fed’s monetary policy.

Technical Details

RePEc Handle
repec:eee:ecolet:v:257:y:2025:i:c:s0165176525005440
Journal Field
General
Author Count
2
Added to Database
2026-01-29