Daily Papers

In a recent paper Juodis and Reese (2022) (JR) show that the application of the CD test proposed by Pesaran (2004) to residuals from panels with latent factors results in over-rejection. They propose a randomized test statistic to correct for over-rejection, and add a screening component to achieve power. This paper considers the same problem but from a different perspective, and shows that the standard CD test remains valid if the latent factors are weak in the sense the strength is less than half. In the case where latent factors are strong, we propose a bias-corrected version, CD*, which is shown to be asymptotically standard normal under the null of error cross-sectional independence and have power against network type alternatives. This result is shown to hold for pure latent factor models as well as for panel regression models with latent factors. The case where the errors are serially correlated is also considered. Small sample properties of the CD* test are investigated by Monte Carlo experiments and are shown to have the correct size for strong and weak factors as well as for Gaussian and non-Gaussian errors. In contrast, it is found that JR's test tends to over-reject in the case of panels with non-Gaussian errors, and has low power against spatial network alternatives. In an empirical application, using the CD* test, it is shown that there remains spatial error dependence in a panel data model for real house price changes across 377 Metropolitan Statistical Areas in the U.S., even after the effects of latent factors are filtered out.

Learning from long-horizon demonstrations with complex action sequences presents significant challenges for visual imitation learning, particularly in understanding temporal relationships of actions and spatial relationships between objects. In this paper, we propose a new agent framework that incorporates two dedicated reflection modules to enhance both plan and code generation. The plan generation module produces an initial action sequence, which is then verified by the plan reflection module to ensure temporal coherence and spatial alignment with the demonstration video. The code generation module translates the plan into executable code, while the code reflection module verifies and refines the generated code to ensure correctness and consistency with the generated plan. These two reflection modules jointly enable the agent to detect and correct errors in both the plan generation and code generation, improving performance in tasks with intricate temporal and spatial dependencies. To support systematic evaluation, we introduce LongVILBench, a benchmark comprising 300 human demonstrations with action sequences of up to 18 steps. LongVILBench emphasizes temporal and spatial complexity across multiple task types. Experimental results demonstrate that existing methods perform poorly on this benchmark, whereas our new framework establishes a strong baseline for long-horizon visual imitation learning.