A Smooth Transition Finite Mixture Model for Accommodating Unobserved Heterogeneity
容纳不可观测异质性的平滑转换有限混合模型
While the smooth transition (ST) model has become popular in business and economics, the treatment of unobserved heterogeneity within these models has received limited attention. We propose a ST finite mixture (STFM) model which simultaneously estimates the presence of time-varying effects and unobserved heterogeneity in a panel data context. Our objective is to accurately recover the heterogeneous effects of our independent variables of interest while simultaneously…