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Inference for Extremal Conditional Quantile Models, with an Application to Market and Birthweight Risks

Victor Chernozhukov, Ivan Fernandez-Val

arXiv 26 Dec 2009 · Statistics — Methodology · 3 citations (OpenAlex)

arXiv:0912.5013 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Quantile regression is an increasingly important empirical tool in economics and other sciences for analyzing the impact of a set of regressors on the conditional distribution of an outcome. Extremal quantile regression, or quantile regression applied to the tails, is of interest in many economic and financial applications, such as conditional value-at-risk, production efficiency, and adjustment bands in (S,s) models. In this paper we provide feasible inference tools for extremal conditional quantile models that rely upon extreme value approximations to the distribution of self-normalized quantile regression statistics. The methods are simple to implement and can be of independent interest even in the non-regression case. We illustrate the results with two empirical examples analyzing extreme fluctuations of a stock return and extremely low percentiles of live infants' birthweights in the range between 250 and 1500 grams.

Citation extraction

35
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Chernozhukov (2005) Extremal quantile regression self0.8746567%
2Bertail, Haefke, Politis, and White (2004) A subsampling approach to estimating the distribution of diverging extreme statistics with applications to assessing financial m…0.84333100%
3Politis, Romano, and Wolf (1999) Subsampling0.7374275%
4Chernozhukov and Umantsev (2001) Conditional Value-at-Risk: Aspects of Modeling and Estimation0.73732100%
5Engle and Manganelli (2004) CAViaR: conditional autoregressive value at risk by regression quantiles0.64422100%
6Koenker (2005) Quantile regression0.64422100%
7Geyer (1996) On the asymptotics of convex stochastic optimization0.5854325%
8Knight (1999) Epi-convergence and Stochastic Equisemicontinuity0.5854325%
9Bassett and Koenker (1982) An empirical quantile function for linear models with iid errors0.5112250%
10Meyer (1973) A poisson-type limit theorem for mixing sequences of dependent 'rare' events0.5112250%

Showing the top 10 of 36 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Extremal Quantile Regression: An Overview1.000154
2Fixed-$k$ Inference for Conditional Extremal Quantiles1.00063
3Extreme Changes in Changes0.64422
4Estimation and Inference about Tail Features with Tail Censored Data0.40511
5Testing Finite Moment Conditions for the Consistency and the Root-N Asymptotic Normality of the GMM and M Estimators0.40511
6Bias correction for quantile regression estimators0.40511
7Estimation of the Local Conditional Tail Average Treatment Effect0.40511
8Unconditional Effects of General Policy Interventions0.40511
9Semiparametric Single-Index Estimation for Average Treatment Effects0.40511
10Conditional Rank-Rank Regression$^*$0.40511