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Bias correction for quantile regression estimators

Grigory Franguridi, Bulat Gafarov, Kaspar Wuthrich

arXiv 5 Nov 2020 · Econometrics · publishedJournal of Econometrics (2025) · 1 citations (OpenAlex)

arXiv:2011.03073 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study the bias of classical quantile regression and instrumental variable quantile regression estimators. While being asymptotically first-order unbiased, these estimators can have non-negligible second-order biases. We derive a higher-order stochastic expansion of these estimators using empirical process theory. Based on this expansion, we derive an explicit formula for the second-order bias and propose a feasible bias correction procedure that uses finite-difference estimators of the bias components. The proposed bias correction method performs well in simulations. We provide an empirical illustration using Engel's classical data on household food expenditure.

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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, V. and C. Hansen (2006) Instrumental quantile regression inference for structural and treatment effect models0.92843100%
2Koenker, R. and G. Bassett (1978) Regression Quantiles0.84333100%
3Chen, L.-Y. and S. Lee (2018) Exact computation of GMM estimators for instrumental variable quantile regression models0.7374350%
4Zhu, Y (2019) Learning non-smooth models: instrumental variable quantile regressions and related problems0.7373367%
5Kaplan, D. M. and Y. Sun (2017) Smoothed estimating equations for instrumental variables quantile regression0.73732100%
6Koenker, R. and K. F. Hallock (2001) Quantile Regression0.73732100%
7Nagar, A. L (1959) The Bias and Moment Matrix of the General k-Class Estimators of the Parameters in Simultaneous Equations0.73732100%
8Ota, H., K. Kato, and S. Hara (2019) Quantile regression approach to conditional mode estimation0.69312533%
9Angrist, J., V. Chernozhukov, and I. Fernández-Val (2006) Quantile regression under misspecification, with an application to the US wage structure0.6444250%
10Engel, E (1857) Die Produktions- und Konsumptionsverhältnisse des Königreichs Sachsen0.64422100%

Showing the top 10 of 48 scored citations.