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Nonparametric Estimation Of Regression Functions With Discrete Regressors

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Author Info
Ouyang, Desheng
Li, Qi
Racine, Jeffrey S.

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Abstract

We consider the problem of estimating a nonparametric regression model containing categorical regressors only. We investigate the theoretical properties of least squares cross-validated smoothing parameter selection, establish the rate of convergence (to zero) of the smoothing parameters for relevant regressors, and show that there is a high probability that the smoothing parameters for irrelevant regressors converge to their upper bound values, thereby automatically smoothing out the irrelevant regressors. A small-scale simulation study shows that the proposed cross-validation-based estimator performs well in finite-sample settings.

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Publisher Info
Article provided by Cambridge University Press in its journal Econometric Theory.

Volume (Year): 25 (2009)
Issue (Month): 01 (February)
Pages: 1-42
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Handle: RePEc:cup:etheor:v:25:y:2009:i:01:p:1-42_09

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  1. Kiefer, Nicholas M. & Racine, Jeffrey S., 2008. "The Smooth Colonel Meets the Reverend," Working Papers 08-01, Cornell University, Center for Analytic Economics. [Downloadable!]
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This page was last updated on 2009-12-20.


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