Factor dimension determination for panel interactive effects models: an orthogonal projection approach
Document Type
Article
Publication Date
6-1-2021
Abstract
We consider a computationally simple orthogonal projection method to implement the (Bai and Ng in Econometrica 70:191–221, 2002) information criterion to select the factor dimension for panel interactive effects models that bypasses issues arising from the joint estimation of the slope coefficients and factor structure. Our simulations show that it performs well in cases the method can be implemented.
Publication Source (Journal or Book title)
Computational Statistics
First Page
1481
Last Page
1497
Recommended Citation
Hsiao, C., Xie, Y., & Zhou, Q. (2021). Factor dimension determination for panel interactive effects models: an orthogonal projection approach. Computational Statistics, 36 (2), 1481-1497. https://doi.org/10.1007/s00180-020-01059-y