A NOTE ON LEAST ABSOLUTE DEVIATION ESTIMATION OF A THRESHOLD MODEL

B-Tier
Journal: Econometric Theory
Year: 2002
Volume: 18
Issue: 3
Pages: 800-814

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This paper develops the limit law for the least absolute deviation estimator of the threshold parameter in linear regression. In this respect, we extend the literature of threshold models. The existing literature considers only the least squares estimation of the threshold parameter (see Chan, 1993, Annals of Statistics 21, 520–533; Hansen, 2000, Econometrica 68, 575–605). This result is useful because in the case of heavy-tailed errors there is an efficiency loss resulting from the use of least squares. Also, for the first time in the literature, we derive the limit law for the likelihood ratio test for the threshold parameter using the least absolute deviation technique.

Technical Details

RePEc Handle
repec:cup:etheor:v:18:y:2002:i:03:p:800-814_18
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-25