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Inference for parameters identified by conditional moment restrictions using a generalized Bierens maximum statistic

Xiaohong Chen, Sokbae Lee, Myung Hwan Seo, Myunghyun Song

arXiv 25 Aug 2020 · Econometrics · publishedThe Review of Economics and Statistics (2025) · 1 citations (OpenAlex)

arXiv:2008.11140 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Many economic panel and dynamic models, such as rational behavior and Euler equations, imply that the parameters of interest are identified by conditional moment restrictions. We introduce a novel inference method without any prior information about which conditioning instruments are weak or irrelevant. Building on Bierens (1990), we propose penalized maximum statistics and combine bootstrap inference with model selection. Our method optimizes asymptotic power by solving a data-dependent max-min problem for tuning parameter selection. Extensive Monte Carlo experiments, based on an empirical example, demonstrate the extent to which our inference procedure is superior to those available in the literature.

Citation extraction

38
references
66
in-text mentions
38
distinct cited
0
self-citations
14,443
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
1Yogo (2004) Estimating the elasticity of intertemporal substitution when instruments are weak1.000104100%
2Bierens (1990) A consistent conditional moment test of functional form0.9507386%
3Antoine and Lavergne (2023) Identification-Robust Nonparametric Inference in a Linear IV Model0.81142100%
4Benítez-Silva, Buchinsky, Chan, Cheidvasser, and Rust (2004) How large is the bias in self-reported disability?0.7374275%
5Bierens (1982) Consistent model specification tests0.64441100%
6Ai and Chen (2003) Efficient estimation of models with conditional moment restrictions containing unknown functions0.64422100%
7van der Vaart and Wellner (1996) Weak Convergence and Empirical Processes0.64422100%
8Domńguez and Lobato (2004) Consistent estimation of models defined by conditional moment restrictions0.64422100%
9Qu and Tkachenko (2016) Global Identification in DSGE Models Allowing for Indeterminacy0.51121100%
10Andrews (1997) A Conditional Kolmogorov Test0.40511100%

Showing the top 10 of 38 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
1Pivotal and identification-robust nonparametric inference in linear IV models0.40511