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Is completeness necessary? Estimation in nonidentified linear models

Andrii Babii, Jean-Pierre Florens

arXiv 11 Sep 2017 · Mathematics — Statistics Theory

arXiv:1709.03473 · PDF · Extracted main text

Abstract

Modern data analysis depends increasingly on estimating models via flexible high-dimensional or nonparametric machine learning methods, where the identification of structural parameters is often challenging and untestable. In linear settings, this identification hinges on the completeness condition, which requires the nonsingularity of a high-dimensional matrix or operator and may fail for finite samples or even at the population level. Regularized estimators provide a solution by enabling consistent estimation of structural or average structural functions, sometimes even under identification failure. We show that the asymptotic distribution in these cases can be nonstandard. We develop a comprehensive theory of regularized estimators, which include methods such as high-dimensional ridge regularization, gradient descent, and principal component analysis (PCA). The results are illustrated for high-dimensional and nonparametric instrumental variable regressions and are supported through simulation experiments.

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52
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86
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distinct cited
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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
1A. Babii (2020) Honest confidence sets in nonparametric iv regression and other ill-posed models1.00064100%
2E. Giné and R. Nickl (2016) Mathematical foundations of infinite-dimensional statistical models1.00053100%
3M. Carrasco, J.-P. Florens, and E. Renault (2007) Linear inverse problems in structural econometrics estimation based on spectral decomposition and regularization0.92844100%
4A. Babii (2022) High-dimensional mixed-frequency iv regression0.92843100%
5J. Freyberger (2017) On completeness and consistency in nonparametric instrumental variable models0.87452100%
6V. S. Korolyuk and Y. V. Borovskich (1994) Theory of U-statistics0.84333100%
7J.-P. Florens, J. Johannes, and S. Van Bellegem (2011) Identification and estimation by penalization in nonparametric instrumental regression self0.81142100%
8X. Chen and T. M. Christensen (2018) Optimal sup-norm rates and uniform inference on nonlinear functionals of nonparametric iv regression0.64422100%
9H. W. Engl, M. Hanke, and A. Neubauer (1996) Regularization of inverse problems0.64422100%
10G. G. Gregory (1977) Large sample theory for u-statistics and tests of fit0.64422100%

Showing the top 10 of 52 scored citations.

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6Machine Learning Panel Data Regressions with Heavy-tailed Dependent Data: Theory and Application0.40511
7Minimax Instrumental Variable Regression and $L_2$ Convergence Guarantees without Identification or Closedness0.40511
8Econometrics of Machine Learning Methods in Economic Forecasting0.40511
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