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Simple Adaptive Size-Exact Testing for Full-Vector and Subvector Inference in Moment Inequality Models

Gregory Cox, Xiaoxia Shi

arXiv 15 Jul 2019 · Econometrics · 4 citations (OpenAlex)

arXiv:1907.06317 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a simple test for moment inequalities that has exact size in normal models with known variance and has uniformly asymptotically exact size more generally. The test compares the quasi-likelihood ratio statistic to a chi-squared critical value, where the degree of freedom is the rank of the inequalities that are active in finite samples. The test requires no simulation and thus is computationally fast and especially suitable for constructing confidence sets for parameters by test inversion. It uses no tuning parameter for moment selection and yet still adapts to the slackness of the moment inequalities. Furthermore, we show how the test can be easily adapted for inference on subvectors for the common empirical setting of conditional moment inequalities with nuisance parameters entering linearly.

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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, I., Roth, J., and Pakes, A (2019) Inference for linear conditional moment inequalities1.00063100%
2Gandhi, A. K., Lu, Z., and Shi, X (2019) Estimating demand for differentiated products with zeroes in market share data self0.87472100%
3Mohamad, D. A., Goeman, J. J., and van Zwet, E. W (2020) Adaptive critical value for constrained likelihood ratio testing0.8434375%
4Andrews, D. and Guggenberger, P (2009) plug-in asymptotic0.7373367%
5Andrews, D. and Soares, G (2010) Inference for parameters defined by moment inequalities using generalized moment selection0.69351100%
6Eizenberg, A (2014) Upstream innovation and product variety in the u.s. home pc market0.64422100%
7Guggenberger, P., Hahn, J., and Kim, K (2008) Specification testing under moment inequalities0.64422100%
8Wollman, T. G (2018) Trucks without bailouts: Equilibrium product characteristics for commercial vehicles0.64422100%
9Bugni, F., Canay, I., and Shi, X (2017) Inference for functions of partially identified parameters in moment inequality models self0.58531100%
10Chen, X., Christensen, T. M., and Tamer, E (2018) Monte carlo confidence sets for identified sets0.51121100%

Showing the top 10 of 62 scored citations.

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