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A Unified Framework for Specification Tests of Continuous Treatment Effect Models

Wei Huang, Oliver Linton, Zheng Zhang

arXiv 16 Feb 2021 · Econometrics

arXiv:2102.08063 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a general framework for the specification testing of continuous treatment effect models. We assume a general residual function, which includes the average and quantile treatment effect models as special cases. The null models are identified under the unconfoundedness condition and contain a nonparametric weighting function. We propose a test statistic for the null model in which the weighting function is estimated by solving an expanding set of moment equations. We establish the asymptotic distributions of our test statistic under the null hypothesis and under fixed and local alternatives. The proposed test statistic is shown to be more efficient than that constructed from the true weighting function and can detect local alternatives deviated from the null models at the rate of $O(N^{-1/2})$. A simulation method is provided to approximate the null distribution of the test statistic. Monte-Carlo simulations show that our test exhibits a satisfactory finite-sample performance, and an application shows its practical value.

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64
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122
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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
1Ai, C., O. Linton, K. Motegi, and Z. Zhang (2021) A unified framework for efficient estimation of general treatment models1.000194100%
2Fong, C., C. Hazlett, and K. Imai (2018) Covariate balancing propensity score for a continuous treatment: Application to the efficacy of political advertisements1.00084100%
3Bierens, H. J. and W. Ploberger (1997) Asymptotic theory of integrated conditional moment tests0.92844100%
4Chen, X. and Y. Fan (1999) Consistent hypothesis testing in semiparametric and nonparametric models for econometric time series0.92843100%
5Li, Q., C. Hsiao, and J. Zinn (2003) Consistent specification tests for semiparametric/nonparametric models based on series estimation methods0.92843100%
6Hirano, K., G. W. Imbens, and G. Ridder (2003, July) (2003) Efficient estimation of average treatment effects using the estimated propensity score0.84333100%
7Hirano, K. and G. W. Imbens (2004) The propensity score with continuous treatments0.81142100%
8Stute, W (1997) Nonparametric model checks for regression0.73732100%
9Chan, K. C. G., S. C. P. Yam, and Z. Zhang (2016) Globally efficient non-parametric inference of average treatment effects by empirical balancing calibration weighting0.64422100%
10Chen, X., O. Linton, and I. Van Keilegom (2003) Estimation of semiparametric models when the criterion function is not smooth0.64422100%

Showing the top 10 of 64 scored citations.