a b s t r a c tTime invariance of factor loadings is a standard assumption in the analysis of large factor models. Yet, this assumption may be restrictive unless parameter shifts are mild (i.e., local to zero). In this paper we develop a new testing procedure to detect big breaks in these loadings at either known or unknown dates. It relies upon testing for parameter breaks in a regression of one of the factors estimated by Principal Components analysis on the remaining estimated factors, where the number of factors is chosen according to Bai and Ng's (2002) information criteria. The test fares well in terms of power relative to other recently proposed tests on this issue, and can be easily implemented to avoid forecasting failures in standard factor-augmented (FAR, FAVAR) models where the number of factors is a priori imposed on the basis of theoretical considerations.

The burgeoning digital-platforms literature across multiple business disciplines has primarily characterized the platform as a market or network. Although the organizing role of platform owners is well recognized, the literature lacks a coherent approach to understanding organizational governance in the platform context. Drawing on classic organizational governance theories, this paper views digital platforms as a distinct organizational form where the mechanisms of incentive and control routinely take center stage. We systematically review research on digital platforms, categorize specific governance mechanisms related to incentive and control, and map a multitude of idiosyncratic design features studied in prior research onto these mechanisms. We further develop an integrative framework to synthesize the review and to offer novel insights into the interrelations among three building blocks: value, governance, and design. Using this framework as a guide, we discuss specific directions for future research and offer a number of illustrative questions to help advance our knowledge about digital platforms’ governance mechanisms and design features.

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