Comparison of local projection estimators for proxy vector autoregressions

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2022
Volume: 134
Issue: C

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

Different local projection (LP) estimators for structural impulse responses of proxy vector autoregressions are reviewed and compared algebraically and with respect to their small sample suitability for inference. Conditions for numerical equivalence and similarities of some estimators are provided. Two generalized least squares (GLS) projection estimators are found to be more accurate than the other LP estimators in small samples. In particular, a lag-augmented GLS estimator tends to be superior to its competitors and to perform as well as a standard VAR estimator for sufficiently large samples.

Technical Details

RePEc Handle
repec:eee:dyncon:v:134:y:2022:i:c:s0165188921002128
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25