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Quantile regression with generated dependent variable and covariates

Jayeeta Bhattacharya

arXiv 25 Dec 2020 · Econometrics

arXiv:2012.13614 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study linear quantile regression models when regressors and/or dependent variable are not directly observed but estimated in an initial first step and used in the second step quantile regression for estimating the quantile parameters. This general class of generated quantile regression (GQR) covers various statistical applications, for instance, estimation of endogenous quantile regression models and triangular structural equation models, and some new relevant applications are discussed. We study the asymptotic distribution of the two-step estimator, which is challenging because of the presence of generated covariates and/or dependent variable in the non-smooth quantile regression estimator. We employ techniques from empirical process theory to find uniform Bahadur expansion for the two step estimator, which is used to establish the asymptotic results. We illustrate the performance of the GQR estimator through simulations and an empirical application based on auctions.

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appendix boundary found by appendix_titled_section at “Appendix 1. Proof section” · 55% of the source is main text. Read the extracted text to check this.

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
1Zou, H. & Yuan, M (2008) Composite quantile regression and the oracle model selection theory1.00053100%
2Koenker, R (2005) Quantile Regression0.87452100%
3Gimenes, N. & Guerre, E (2020) Quantile regression methods for first-price auctions0.84333100%
4Koenker, R. & Bassett, G (1978) Regression quantiles0.84333100%
5Buchinsky, M (1995) Quantile regression, Box–Cox transformation model, and the US wage structure, 1963–19870.81142100%
6Amemiya, T (1974) The nonlinear two-stage least-squares estimator0.64422100%
7Chen, X., Linton, O., & Van Keilegom, I (2003) Estimation of semiparametric models when the criterion function is not smooth0.64422100%
8Newey, W. K. & McFadden, D (1994) Large sample estimation and hypothesis testing0.64422100%
9Massart, P (2007) Concentration inequalities and model selection, volume 60.5853333%
10Buchinsky, M (1994) Changes in the US wage structure 1963-1987: Application of quantile regression0.58531100%

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Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Estimating Conditional Value-at-Risk with Nonstationary Quantile Predictive Regression Models0.60693
2Quantile Time Series Regression Models Revisited0.40511