Regression modelEconometrics / time series

Structural Break GLS

Structural Break GLS combines Generalized Least Squares estimation with explicit allowance for regime shifts in the data-generating process. The method estimates separate coefficient vectors for each segment defined by detected break dates while correcting for non-spherical errors — heteroscedasticity or autocorrelation — that frequently accompany structural change, yielding consistent and efficient estimates across all regimes.

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Sources

  1. Bai, J., & Perron, P. (1998). Estimating and testing linear models with multiple structural changes. Econometrica, 66(1), 47–78. DOI: 10.2307/2998540
  2. Greene, W. H. (2012). Econometric Analysis (7th ed.). Prentice Hall. ISBN: 978-0131395381

Related methods

Referenced by

ScholarGateStructural Break GLS (Generalized Least Squares with Structural Breaks). Retrieved 2026-06-04 from https://scholargate.app/tr/econometrics/structural-break-gls