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Semiparametric inference for partially linear regressions with Box-Cox transformation

Daniel Becker, Alois Kneip, Valentin Patilea

arXiv 20 Jun 2021 · Econometrics

arXiv:2106.10723 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In this paper, a semiparametric partially linear model in the spirit of Robinson (1988) with Box- Cox transformed dependent variable is studied. Transformation regression models are widely used in applied econometrics to avoid misspecification. In addition, a partially linear semiparametric model is an intermediate strategy that tries to balance advantages and disadvantages of a fully parametric model and nonparametric models. A combination of transformation and partially linear semiparametric model is, thus, a natural strategy. The model parameters are estimated by a semiparametric extension of the so called smooth minimum distance (SmoothMD) approach proposed by Lavergne and Patilea (2013). SmoothMD is suitable for models defined by conditional moment conditions and allows the variance of the error terms to depend on the covariates. In addition, here we allow for infinite-dimension nuisance parameters. The asymptotic behavior of the new SmoothMD estimator is studied under general conditions and new inference methods are proposed. A simulation experiment illustrates the performance of the methods for finite samples.

Citation extraction

45
references
168
in-text mentions
45
distinct cited
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17,260
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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
1Li, Q (1996) On the root-n-consistent semiparametric estimation of partially linear models1.00084100%
2Robinson, P.M (1988) Root-n-consistent semiparametric regression1.00073100%
3Lavergne, P., Patilea, V (2013) Smooth minimum distance estimation and testing with conditional estimating equations: Uniform in bandwidth theory self0.93511682%
4Deming, D.J (2017) The growing importance of social skills in the labor market0.693211100%
5Horowitz, J.L (1998) Semiparametric methods in econometrics0.64441100%
6Amemiya, T., Powell, J.L (1981) A comparison of the Box-Cox maximum likelihood estimator and the non-linear two-stage least squares estimator0.64422100%
7Powell, J.L (1996) Rescaled methods-of-moments estimation for the Box-Cox regression model0.64422100%
8Showalter, M.H (1994) A Monte Carlo investigation of the Box-Cox model and a nonlinear least squares alternative0.64422100%
9Altonji, J.G., Bharadwaj, P., Lange, F (2012) Changes in the characteristics of American youth: Implications for adult outcomes0.58531100%
10Johnson, N.L., Kotz, S., Balakrishnan, N (1995) Continuous univariate distributions0.58531100%

Showing the top 10 of 45 scored citations.