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A conditional approach to panel data models with common shocks

Title: A conditional approach to panel data models with common shocks
Authors: Forchini, Giovanni; Peng, Bin
Publisher Information: MDPI
Publication Year: 2016
Collection: EconStor (German National Library of Economics, ZBW)
Subject Terms: ddc:330; C23; factor structure; common shocks; conditional independence; conditional central limit theorem
Description: This paper studies the effects of common shocks on the OLS estimators of the slopes' parameters in linear panel data models. The shocks are assumed to affect both the errors and some of the explanatory variables. In contrast to existing approaches, which rely on using results on martingale difference sequences, our method relies on conditional strong laws of large numbers and conditional central limit theorems for conditionally-heterogeneous random variables.
Document Type: article in journal/newspaper
Language: English
Relation: https://hdl.handle.net/10419/171857
DOI: 10.3390/econometrics4010004
Availability: https://hdl.handle.net/10419/171857; https://doi.org/10.3390/econometrics4010004
Rights: http://creativecommons.org/licenses/by/4.0/
Accession Number: edsbas.5A1BE998
Database: BASE