Jushan Bai Quote

Central to both the theoretical and the empirical validity of factor models is the correct specification of the number of factors.

Jushan Bai and Serena Ng. "Determining the number of factors in approximate factor models." Econometrica 70.1 (2002): 191-221.

Central to both the theoretical and the empirical validity of factor models is the correct specification of the number of factors.

Central to both the theoretical and the empirical validity of factor models is the correct specification of the number of factors.

Central to both the theoretical and the empirical validity of factor models is the correct specification of the number of factors.

Central to both the theoretical and the empirical validity of factor models is the correct specification of the number of factors.