Kernel-weighted GMM estimators for linear time series models

A-Tier
Journal: Journal of Econometrics
Year: 2012
Volume: 170
Issue: 2
Pages: 399-421

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

This paper analyzes the higher-order asymptotic properties of generalized method of moments (GMM) estimators for linear time series models using many lags as instruments. A data-dependent moment selection method based on minimizing the approximate mean squared error is developed. In addition, a new version of the GMM estimator based on kernel-weighted moment conditions is proposed. It is shown that kernel-weighted GMM estimators can reduce the asymptotic bias compared to standard GMM estimators. Kernel weighting also helps to simplify the problem of selecting the optimal number of instruments. A feasible procedure similar to optimal bandwidth selection is proposed for the kernel-weighted GMM estimator.

Technical Details

RePEc Handle
repec:eee:econom:v:170:y:2012:i:2:p:399-421
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-25