A generalized panel data switching regression model

- We consider a generalized switching regression model in the panel data setting.
- Switching is extended to a polychotomous and/or sequential choice.
- The model allows for unobserved effects correlated with covariates.
- We estimate scope economies for the publicly owned US electric utilities in 2001-2003.

This paper considers a generalized panel data model of polychotomous and/or sequential switching which can also accommodate the dependence between unobserved effects and covariates in the model. We showcase our model using an empirical illustration in which we estimate scope economies for the publicly owned electric utilities in the US during the period from 2001 to 2003.