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학술대회자료

Likelihood Based Model Selection in the Presence of Incidental Parameters

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This paper considers model selection problem in the presence of incidental parameters. The main interest is in selecting the structure of the model in the common parameters after concentrating out the incidental parameters. A new model selection information criterion is developed, which impose heavier penalties than those of the standard information criteria. As a particular example, a lag order selection criterion is examined in the context of dynamic panel models with fixed individual effects.

1 Introduction

2 Incidental Parameters Problem

3 Profile Likelihood and Kullback-Leibler Divergence

4 Lag Order Selection in Dynamic Panel Models

5 Simulations

6 Concluding Remarks

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