Hiroaki Kaido, Yi Zhang
arXiv 10 Oct 2019 · Econometrics · 5 citations (OpenAlex)
arXiv:1910.04610 · PDF · DOI · OpenAlex · Extracted main text
This study develops a framework for testing hypotheses on structural parameters in incomplete models. Such models make set-valued predictions and hence do not generally yield a unique likelihood function. The model structure, however, allows us to construct tests based on the least favorable pairs of likelihoods using the theory of Huber and Strassen (1973). We develop tests robust to model incompleteness that possess certain optimality properties. We also show that sharp identifying restrictions play a role in constructing such tests in a computationally tractable manner. A framework for analyzing the local asymptotic power of the tests is developed by embedding the least favorable pairs into a model that allows local approximations under the limits of experiments argument. Examples of the hypotheses we consider include those on the presence of strategic interaction effects in discrete games of complete information. Monte Carlo experiments demonstrate the robust performance of the proposed tests.
appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.
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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Galichon and Henry (2011) Set identification in models with multiple equilibria | 1.000 | 8 | 3 | 100% |
| 2 | Mourifie, Henry, and Meango (2018) Sharp Bounds and Testability of a Roy Model of STEM Major Choices | 0.928 | 4 | 3 | 100% |
| 3 | Philippe, Debs, and Jaffray (1999) Decision making with monotone lower probabilities of infinite order | 0.928 | 4 | 3 | 100% |
| 4 | Shapiro (1988) Sensitivity Analysis of Nonlinear Programs and Differentiability Properties of Metric Projections | 0.874 | 17 | 2 | 100% |
| 5 | Epstein, Kaido, and Seo (2016) Robust Confidence Regions for Incomplete Models | 0.874 | 8 | 2 | 100% |
| 6 | Chesher and Rosen (2017) Generalized instrumental variable models | 0.874 | 7 | 2 | 100% |
| 7 | Van der Vaart (2000) Asymptotic statistics\/ | 0.874 | 6 | 2 | 100% |
| 8 | Lehmann and Romano (2006) Testing statistical hypotheses\/ | 0.874 | 5 | 2 | 100% |
| 9 | Ciliberto and Tamer (2009) Market Structure and Multiple Equilibria in Airline Markets | 0.843 | 3 | 3 | 100% |
| 10 | Berry (1992) Estimation of a Model of Entry in the Airline Industry | 0.843 | 3 | 3 | 100% |
Showing the top 10 of 79 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.