Jiang, Liang; Wang, Xiaohu; Yu, Jun - School of Economics, Singapore Management University - 2014
realistic situations, there is a strong finite sample bias in the estimator of structural break points. This property is shared … discrete time models. A simulation-based method based on the indirect estimation approach is proposed to reduce the bias both … substantial bias reductions. However, since the binding function has a slope less than one, the variance of the indirect estimator …