Specification Choices in Quantile Regression for Empirical Macroeconomics

B-Tier
Journal: Journal of Applied Econometrics
Year: 2025
Volume: 40
Issue: 1
Pages: 57-73

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Quantile regression has become widely used in empirical macroeconomics, in particular for estimating and forecasting tail risks. This paper examines various choices in the specification of quantile regressions for macro applications, including how and to what extent to include shrinkage and whether to apply shrinkage in a classical or Bayesian framework. We focus on forecasting accuracy, measured with quantile scores and quantile‐weighted continuous ranked probability scores at a range of quantiles from the left to right tail. Across applications, we find that shrinkage is generally helpful to quantile forecast accuracy, with Bayesian quantile regression dominating frequentist quantile regression. JEL Classification: C53, E17, E37, F47

Technical Details

RePEc Handle
repec:wly:japmet:v:40:y:2025:i:1:p:57-73
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-25