Testing constancy in varying coefficient models

A-Tier
Journal: Journal of Econometrics
Year: 2021
Volume: 222
Issue: 1
Pages: 625-644

Authors (2)

Delgado, Miguel A. (Universidad Carlos III de Madr...) Arteaga-Molina, Luis A. (not in RePEc)

Score contribution per author:

2.018 = (α=2.02 / 2 authors) × 2.0x A-tier

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

Abstract

This article proposes a coefficients constancy test in semi-varying coefficient models that only needs to estimate the restricted coefficients under the null hypothesis. The test statistic resembles the union-intersection test after ordering the data according to the varying coefficients’ explanatory variable. This statistic depends on a trimming parameter that can be chosen by a data-driven calibration method we propose. A bootstrap test is justified under fairly general regularity conditions. Under more restrictive assumptions, the critical values can be tabulated, and trimming is unnecessary. The finite sample performance is studied by means of Monte Carlo experiments, and a real data application for modeling education returns.

Technical Details

RePEc Handle
repec:eee:econom:v:222:y:2021:i:1:p:625-644
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25