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The Informativeness of Estimation Moments

Bo Honore, Thomas Jorgensen, Aureo de Paula

arXiv 3 Jul 2019 · Econometrics · publishedJournal of Applied Econometrics (2020) · 20 citations (OpenAlex)

arXiv:1907.02101 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper introduces measures for how each moment contributes to the precision of parameter estimates in GMM settings. For example, one of the measures asks what would happen to the variance of the parameter estimates if a particular moment was dropped from the estimation. The measures are all easy to compute. We illustrate the usefulness of the measures through two simple examples as well as an application to a model of joint retirement planning of couples. We estimate the model using the UK-BHPS, and we find evidence of complementarities in leisure. Our sensitivity measures illustrate that the estimate of the complementarity is primarily informed by the distribution of differences in planned retirement dates. The estimated econometric model can be interpreted as a bivariate ordered choice model that allows for simultaneity. This makes the model potentially useful in other applications.

Citation extraction

34
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43
in-text mentions
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distinct cited
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main-text words

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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
1Andrews, Gentzkow and Shapiro (2017) Measuring the Sensitivity of Parameter Estimates to Estimation Moments1.00053100%
2Honoré and de Paula (2018) A new model for interdependent durations0.92843100%
3Gayle and Shephard (2019) Optimal Taxation, Marriage, Home Production, and Family Labor Supply0.64422100%
4Blundell, Meghir and Smith (2004) Pension Incentives and the Pattern of Retirement in the United Kingdom0.51121100%
5Altonji and Segal (1996) Small-Sample Bias in GMM Estimation of Covariance Structures0.40511100%
6An, Christensen and Gupta (2004) Multivariate mixed proportional hazard modelling of the joint retirement of married couples0.40511100%
7Armstrong and Kolesár (2018) Sensitivity Analysis using Approximate Moment Condition Models0.40511100%
8Banks, Blundell and Casanova (2010) The dynamics of retirement behavior in couples: Reduced-form evidence from England and the US0.40511100%
9Blau (1998) Labor Force Dynamics of Older Married Couples0.40511100%
10Blau and Gilleskie (2006) Health Insurance and Retirement of Married Couples0.40511100%

Showing the top 10 of 34 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
1The purpose of an estimator is what it does: Misspecification, estimands, and over-identification0.40511
2Choosing What to Calibrate and What to Estimate in Structural Models0.40511