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

Alev Atak, Oliver Linton, Zhijie Xiao

Research output: Contribution to journalArticleResearchpeer-review

17 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)92-115
Number of pages24
JournalJournal of Econometrics
Volume164
Issue number1
DOIs
Publication statusPublished - 1 Sep 2011
Externally publishedYes

Keywords

  • Global warming
  • Kernel estimation
  • Semiparametric
  • Trend analysis

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