Eigenvalue-Based Randomness Test for Residual Diagnostics in Panel Data Models

Marcell T. Kurbucz, Betsabé Pérez Garrido, Antal Jakovác

This paper introduces the Eigenvalue-Based Randomness (EBR) test - a novel approach rooted in the Tracy-Widom law from random matrix theory - and applies it to the context of resid…