Publication Type

Journal Article

Version

publishedVersion

Publication Date

10-2005

Abstract

A popular data-driven method for choosing the bandwidth in standard kernel regression is cross-validation. Even when there are outliers ill the data, robust kernel regression can be used to estimate the unknown regression curve [Robust and Nonlinear Time Series Analysis. Lecture Notes in Statist. (1984) 26 163-184]. However, Under these Circumstances Standard cross-validation is no longer a satisfactory bandwidth selector because it is unduly influenced by extreme prediction errors caused by the existence of these Outliers. A more robust method proposed here is a cross-validation method that discounts the extreme prediction errors. In large samples the robust method chooses consistent bandwidths, and the consistency of the method is practically independent of the form ill which extreme prediction errors are discounted. Additionally, evaluation of the method's finite sample behavior in a simulation demonstrates that the proposed method performs favorably. This method call also be applied to other problems, for example, model selection, that require cross-validation.

Keywords

Bandwidth, cross-validation, kernel, nonparametric regression, robust, smoothing

Discipline

Econometrics

Research Areas

Econometrics

Publication

Annals of Statistics

Volume

33

Issue

5

First Page

2291

Last Page

2310

ISSN

0090-5364

Identifier

10.1214/009053605000000499

Publisher

Institute of Mathematical Statistics

Copyright Owner and License

Publisher

Additional URL

https://doi.org/10.1214/009053605000000499

Included in

Econometrics Commons

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