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A Unifying Framework for Testing Shape Restrictions

Zheng Fang

arXiv 26 Jul 2021 · Econometrics

arXiv:2107.12494 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper makes the following original contributions. First, we develop a unifying framework for testing shape restrictions based on the Wald principle. The test has asymptotic uniform size control and is uniformly consistent. Second, we examine the applicability and usefulness of some prominent shape enforcing operators in implementing our framework. In particular, in stark contrast to its use in point and interval estimation, the rearrangement operator is inapplicable due to a lack of convexity. The greatest convex minorization and the least concave majorization are shown to enjoy the analytic properties required to employ our framework. Third, we show that, despite that the projection operator may not be well-defined/behaved in general parameter spaces such as those defined by uniform norms, one may nonetheless employ a powerful distance-based test by applying our framework. Monte Carlo simulations confirm that our test works well. We further showcase the empirical relevance by investigating the relationship between weekly working hours and the annual wage growth in the high-end labor market.

Citation extraction

72
references
160
in-text mentions
72
distinct cited
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self-citations
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main-text words

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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
1Chetverikov, D (2019) Testing Regression Monotonicity in Econometric Models1.00063100%
2Chernozhukov, V., S. Lee, and A. M. Rosen (2013) Intersection Bounds: Estimation and Inference0.97112492%
3Fang, Z. and J. Seo (2021) A Projection Framework for Testing Shape Restrictions That Form Convex Cones self0.93131481%
4Chen, X., V. Chernozhukov, I. Fernández-Val, S. Kostyshak, and Y. Luo (2021) Shape-Enforcing Operators for Point and Interval Estimators0.874112100%
5Gicheva, D (2013) Working long hours and early career outcomes in the high-end labor market0.874112100%
6Chernozhukov, V., I. Fernández-Val, and A. Galichon (2009) Improving Point and Interval Estimates of Monotone Functions by Rearrangement0.81142100%
7Chernozhukov, V., W. K. Newey, and A. Santos (2015) Constrained Conditional Moment Restriction Models0.81142100%
8Fang, Z. and A. Santos (2019) Inference on directionally differentiable functions self0.73732100%
9Andrews, D. W. K. and X. Shi (2013) Inference Based on Conditional Moment Inequalities0.64422100%
10Beare, B. K. and J.-M. Moon (2015) Nonparametric Tests of Density Ratio Ordering0.64422100%

Showing the top 10 of 72 scored citations.