A semiparametric panel model for unbalanced data with application to climate change in the United Kingdom


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ATAK ATALIK A., Linton O., Xiao Z.

JOURNAL OF ECONOMETRICS, vol.164, no.1, pp.92-115, 2011 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 164 Issue: 1
  • Publication Date: 2011
  • Doi Number: 10.1016/j.jeconom.2011.02.008
  • Journal Name: JOURNAL OF ECONOMETRICS
  • Journal Indexes: Science Citation Index Expanded, Social Sciences Citation Index, Scopus
  • Page Numbers: pp.92-115
  • Keywords: Global warming, Kernel estimation, Semiparametric, Trend analysis, SELECTION MODELS, WEATHER

Abstract

This paper is concerned with developing a semiparametric panel model to explain the trend in UK temperatures and other weather outcomes over the last century. We work with the monthly averaged maximum and minimum temperatures observed at the twenty six Meteorological Office stations. The data is an unbalanced panel. We allow the trend to evolve in a nonparametric way so that we obtain a fuller picture of the evolution of common temperature in the medium timescale. Profile likelihood estimators (PLE) are proposed and their statistical properties are studied. The proposed PLE has improved asymptotic property comparing the sequential two-step estimators. Finally, forecasting based on the proposed model is studied. (C) 2011 Elsevier B.V. All rights reserved.