Asymptotic distribution of factor augmented estimators for panel regression

Citations

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61

초록

In this paper we derive an asymptotic theory for linear panel regression augmented with estimated common factors. We give conditions under which the estimated factors can be used in place of the latent factors in the regression equation. For the principal components estimate of the factor space it is shown that these conditions are satisfied when T/N -> 0 and N/T-3 -> 0 under regularity. Monte Carlo studies verify the asymptotic theory. Published by Elsevier B.V.

키워드

Factor augmented panel regressionFactor augmented estimatorPrincipal component augmented estimatorCross section dependenceInteractive fixed effectsFACTOR MODELSINFERENCENUMBER
제목
Asymptotic distribution of factor augmented estimators for panel regression
저자
Greenaway-McGrevy, RyanHan, ChirokSul, Donggyu
DOI
10.1016/j.jeconom.2012.01.003
발행일
2012-07
유형
Article
저널명
Journal of Econometrics
169
1
페이지
48 ~ 53