A nonparametric test for path dependence in discrete panel data

Citation:

Kasy, Maximilian. 2011. “A nonparametric test for path dependence in discrete panel data.” Economics Letters 113 (2).
pathdependence.pdf244 KB

Abstract:

This paper proposes a test for path dependence in discrete panel data based on a characterization of stochastic processes that are mixtures of Markov Chains. This test is applied to European Community Household Panel data on employment histories. The data allow to reject the null of no path dependence in all subsamples considered.

Last updated on 12/13/2013