Lixiong Li, Désiré Kédagni, Ismaël Mourifié
arXiv 21 Dec 2020 · Econometrics · publishedQuantitative Economics (2024) · 8 citations (OpenAlex)
arXiv:2012.11679 · PDF · DOI · OpenAlex · Extracted main text
In many set-identified models, it is difficult to obtain a tractable characterization of the identified set. Therefore, researchers often rely on non-sharp identification conditions, and empirical results are often based on an outer set of the identified set. This practice is often viewed as conservative yet valid because an outer set is always a superset of the identified set. However, this paper shows that when the model is refuted by the data, two sets of non-sharp identification conditions derived from the same model could lead to disjoint outer sets and conflicting empirical results. We provide a sufficient condition for the existence of such discordancy, which covers models characterized by conditional moment inequalities and the Artstein (1983) inequalities. We also derive sufficient conditions for the non-existence of discordant submodels, therefore providing a class of models for which constructing outer sets cannot lead to misleading interpretations. In the case of discordancy, we follow Masten and Poirier (2021) by developing a method to salvage misspecified models, but unlike them, we focus on discrete relaxations. We consider all minimum relaxations of a refuted model that restores data-consistency. We find that the union of the identified sets of these minimum relaxations is robust to detectable misspecifications and has an intuitive empirical interpretation.
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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 | Masten, Matthew A and Alexandre Poirier (2021) Salvaging falsified instrumental variable models | 1.000 | 11 | 3 | 100% |
| 2 | Artstein, Zvi (1983) Distributions of random sets and random selections | 1.000 | 10 | 5 | 100% |
| 3 | Ciliberto, Federico and Elie Tamer (2009) Market structure and multiple equilibria in airline markets | 1.000 | 9 | 5 | 100% |
| 4 | Manski, Charles F (1990) Nonparametric bounds on treatment effects | 1.000 | 8 | 4 | 100% |
| 5 | Molinari, Francesca (2020) Microeconometrics with partial identification | 1.000 | 6 | 3 | 100% |
| 6 | Sheng, Shuyang (2020) A structural econometric analysis of network formation games through subnetworks | 0.928 | 4 | 3 | 100% |
| 7 | Andrews, Donald WK and Xiaoxia Shi (2013) Inference based on conditional moment inequalities | 0.874 | 6 | 2 | 100% |
| 8 | Chesher, Andrew and Adam M Rosen (2020) Econometric modeling of interdependent discrete choice with applications to market structure | 0.843 | 3 | 3 | 100% |
| 9 | Manski, Charles F and John V Pepper (2000) Monotone Instrumental Variables: With an Application to the Returns to Schooling | 0.843 | 3 | 3 | 100% |
| 10 | Berry, Steven T and Giovanni Compiani (2023) An instrumental variable approach to dynamic models | 0.737 | 3 | 2 | 100% |
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arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.