Page 1 of 1

BAING—Chooses number of factors in linear factor model

Posted: Thu May 03, 2018 11:51 am
by TomDoan
@BaiNg estimates the required number of factors in a linear factor model using the formulas in Bai and Ng(2002), "Determining the Number of Factors in Approximate Factor Models", Econometrica, 2002, vol 70, pp 191-222. Note that this assumes the data are stationary.

Detailed description