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Optimal Uniform Convergence Rates for Sieve Nonparametric Instrumental Variables Regression

Xiaohong Chen, Timothy Christensen

arXiv 2 Nov 2013 · Mathematics — Statistics Theory · 14 citations (OpenAlex)

arXiv:1311.0412 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study the problem of nonparametric regression when the regressor is endogenous, which is an important nonparametric instrumental variables (NPIV) regression in econometrics and a difficult ill-posed inverse problem with unknown operator in statistics. We first establish a general upper bound on the sup-norm (uniform) convergence rate of a sieve estimator, allowing for endogenous regressors and weakly dependent data. This result leads to the optimal sup-norm convergence rates for spline and wavelet least squares regression estimators under weakly dependent data and heavy-tailed error terms. This upper bound also yields the sup-norm convergence rates for sieve NPIV estimators under i.i.d. data: the rates coincide with the known optimal $L^2$-norm rates for severely ill-posed problems, and are power of $\log(n)$ slower than the optimal $L^2$-norm rates for mildly ill-posed problems. We then establish the minimax risk lower bound in sup-norm loss, which coincides with our upper bounds on sup-norm rates for the spline and wavelet sieve NPIV estimators. This sup-norm rate optimality provides another justification for the wide application of sieve NPIV estimators. Useful results on weakly-dependent random matrices are also provided.

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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
1Blundell, R., X. Chen, and D. Kristensen (2007) Semi-Nonparametric IV Estimation of Shape-Invariant Engel Curves1.000123100%
2Chen, X. and M. Reiss (2011) On Rate Optimality for Ill-Posed Inverse Problems in Econometrics self1.000103100%
3Chen, X. and D. Pouzo (2012) Estimation of Nonparametric Conditional Moment Models With Possibly Nonsmooth Generalized Residuals self1.00094100%
4Hall, P. and J. L. Horowitz (2005) Nonparametric Methods for Inference in the Presence of Instrumental Variables1.00063100%
5Newey, W. K (1997) Convergence Rates and Asymptotic Normality for Series Estimators1.00053100%
6Huang, J. Z (1998) Projection Estimation in Multiple Regression with Application to Functional ANOVA Models0.9416383%
7Horowitz, J. L (2011) Applied Nonparametric Instrumental Variables Estimation0.92843100%
8Stone, C. J (1982) Optimal Global Rates of Convergence for Nonparametric Regression0.92843100%
9Newey, W. K. and J. L. Powell (2003) Instrumental Variable Estimation of Nonparametric Models0.87452100%
10Huang, J. Z (2003) Local Asymptotics for Polynomial Spline Regression0.77615647%

Showing the top 10 of 55 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
1Optimal Sup-norm Rates and Uniform Inference on Nonlinear Functionals of Nonparametric IV Regression0.64422
2Sieve Wald and QLR Inferences on Semi/nonparametric Conditional Moment Models0.51122
3Nonparametric Instrumental Variable Estimation Under Monotonicity0.51122
4Assumption-lean Falsification Tests of Rate Double-Robustness of Double-Machine-Learning Estimators0.40511