Open AccessEstimating The Number And Location Of Knots In Spline Regressions
Author(s) -
Lawrence C. Marsh
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v2i3.6571
Subject(s) - spline (mechanical) , econometrics , mathematics , regression analysis , statistics , regression , engineering , structural engineering
The purpose of this article is to demonstrate a simple method of estimating the number and location of knots (join points) in spline regressions.Spline regression models offer a convenience alternative to dummy (binary) variable models. Using a dummy variable to alter the intercept or slope of a model generally results in a break in the regression line. For example, a substantial drop in a firms production may occur if it suddenly closes a major plant.