ASBS Econometrics Seminar with Professor Jad Beyhum, KU Leuven

Inference after discretizing time-varying unobserved heterogeneity
Professor Jad Beyhum, KU Leuven
Friday, 3 October 2025, 15:00–16:30 Room 386AB, Adam Smith Business School 

Abstract 
Approximating time-varying unobserved heterogeneity by discrete types has become increasingly popular in economics. Yet, provably valid post-clustering inference for target parameters in models that do not impose an exact group structure is still lacking. This paper fills this gap in the leading case of a linear panel data model with nonseparable two-way unobserved heterogeneity. Building on insights from the double machine learning literature, we propose a simple inference procedure based on a bias-reducing moment. Asymptotic theory and simulations suggest excellent performance. In the application on fiscal policy we revisit, the novel approach yields conclusions in line with economic theory.

Biography 
​Jad Beyhum is an Associate Professor of Economics at KU Leuven, specializing in econometrics. His research focuses on panel data, high-dimensional methods, duration models, and instrumental variables techniques. For further information, please contact business-seminar-series@glasgow.ac.uk. We are committed to providing a collegial, inclusive, and intellectually stimulating environment for all our seminars, in accordance with our established Code of Conduct.