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학술저널

Grouping and clustering methods in econometrics

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This paper reviews recent developments in the application of clustering methods in econometrics. In particular, we discuss how the k-means algorithm can be extended and applied to econometric problems. Models with group structures are useful to describe heterogeneity across units. Such models can be estimated by extensions of the k-means algorithm. We also discuss inference methods for group memberships and methods to incorporate possible structural breaks.

1. Introduction

2. The k-means algorithm

3. Group heterogeneity in panel data

4. Structural breaks

5. Conclusion

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