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Fixed-k Inference for Conditional Extremal Quantiles

Yuya Sasaki, Yulong Wang

arXiv 31 Aug 2019 · Econometrics · publishedJournal of Business and Economic Statistics (2021) · 7 citations (OpenAlex)

arXiv:1909.00294 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a new extreme value theory for repeated cross-sectional and panel data to construct asymptotically valid confidence intervals (CIs) for conditional extremal quantiles from a fixed number $k$ of nearest-neighbor tail observations. As a by-product, we also construct CIs for extremal quantiles of coefficients in linear random coefficient models. For any fixed $k$, the CIs are uniformly valid without parametric assumptions over a set of nonparametric data generating processes associated with various tail indices. Simulation studies show that our CIs exhibit superior small-sample coverage and length properties than alternative nonparametric methods based on asymptotic normality. Applying the proposed method to Natality Vital Statistics, we study factors of extremely low birth weights. We find that signs of major effects are the same as those found in preceding studies based on parametric models, but with different magnitudes.

Citation extraction

44
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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 and Fernández-Val (2011) Inference for extremal conditional quantile models, with an application to market and birthweight Risks1.00063100%
2Abrevaya (2001) The effects of demographics and maternal Behavior on the distribution of birth outcomes0.87452100%
3Gardes, Girard, and Lekina (2010) Functional Nonparametric Estimation of Conditional Extreme Quantiles0.87452100%
4Koenker and Hallock (2001) Quantile Regression: An introduction0.73732100%
5Elliott, Müller, and Watson (2015) Nearly Optimal Tests When a Nuisance Parameter is Present under the Null Hypothesis0.6444250%
6Wang and Li (2013) Estimation of Extreme Conditional Quantiles Through Power Transformation0.6443267%
7Chernozhukov (2005) Extremal Quantile Autoregression0.64422100%
8de Haan and Ferreira (2007) Extreme Value Theory: An Introduction0.63012325%
9Berbee (1987) Convergence Rates in the Strong Law for Bounded Mixing Sequences0.5112250%
10Ding (2016) On the Conditional Distribution of the Multivariate t Distribution0.5112250%

Showing the top 10 of 44 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
1Non-Existent Moments of Earnings Growth0.51142
2Extreme Changes in Changes0.40511
3Extremal Quantiles under Two-Way Clustering0.40511