Local Projection Inference in High Dimensions

Fuente: arXiv
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Autori principali: Adamek, Robert, Smeekes, Stephan, Wilms, Ines
Natura: Preprint
Pubblicazione: 2022
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author Adamek, Robert
Smeekes, Stephan
Wilms, Ines
author_facet Adamek, Robert
Smeekes, Stephan
Wilms, Ines
contents In this paper, we estimate impulse responses by local projections in high-dimensional settings. We use the desparsified (de-biased) lasso to estimate the high-dimensional local projections, while leaving the impulse response parameter of interest unpenalized. We establish the uniform asymptotic normality of the proposed estimator under general conditions. Finally, we demonstrate small sample performance through a simulation study and consider two canonical applications in macroeconomic research on monetary policy and government spending.
format Preprint
id arxiv_https___arxiv_org_abs_2209_03218
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle Local Projection Inference in High Dimensions
Adamek, Robert
Smeekes, Stephan
Wilms, Ines
Econometrics
Statistics Theory
Applications
Methodology
In this paper, we estimate impulse responses by local projections in high-dimensional settings. We use the desparsified (de-biased) lasso to estimate the high-dimensional local projections, while leaving the impulse response parameter of interest unpenalized. We establish the uniform asymptotic normality of the proposed estimator under general conditions. Finally, we demonstrate small sample performance through a simulation study and consider two canonical applications in macroeconomic research on monetary policy and government spending.
title Local Projection Inference in High Dimensions
topic Econometrics
Statistics Theory
Applications
Methodology
url https://arxiv.org/abs/2209.03218