Template-Type: ReDIF-Article 1.0
Author-Name:  Zümre Özdemir Güler  
Author-Email: zumreozd@kmu.edu.tr
Author-Workplace-Name: Research Asistant of Econometrics, Karamanoğlu Mehmet Bey University, Karaman, TURKEY.
Author-Name:  Mehmet Akif Bakır
Author-Email:  mabakir@gazi.edu.tr
Author-Workplace-Name: Professor of Statistics, Gazi University, Ankara, TURKEY.
Title:  Performance of Methods Determining Structural Break in Linear Regression Models 
Abstract:  In the literature, although many studies are describing the structural break in the linear regression model with time-series data, studies investigating this issue with 
cross-sectional data are limited. In this study, the performance evaluation of some approaches used to determine the structural break in a linear regression equation based on 
cross-sectional data was performed. In this context, firstly, the structural break problem is defined. Then, the theoretical expositions of some well-known methods which determine the 
structural break are given. The methods which used to determine the structural breaks may show performance differences under the effect of some factors. The performances of selected 
methods were evaluated with a simulation study in the context of the difference of constant terms, the difference of slope coefficients, location of break-point, sample size and 
homogeneity of error variances. The results of the simulation showed that the performances become different in terms of some structural features from the suggested methods for 
determination of structural break. 
 
Classification-JEL:  C40, C530 
Keywords: Structural Break, Linear Regression Models, Cross-Sectional Data, Break-Point.
Journal: International Econometric Review
Pages: 70-83
Volume: 11
Issue: 2
Year: 2019
Month: September
File-URL: http://www.era.org.tr/makaleler/450804.pdf
File-Format: Application/pdf
Handle: RePEc:erh:journl:v:11:y:2019:i:2:p:70-83