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Implementing an Improved Test of Matrix Rank in Stata

Qihui Chen, Zheng Fang, Xun Huang

arXiv 1 Aug 2021 · Econometrics

arXiv:2108.00511 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a Stata command, bootranktest, for implementing the matrix rank test of Chen and Fang (2019) in linear instrumental variable regression models. Existing rank tests employ critical values that may be too small, and hence may not even be first order valid in the sense that they may fail to control the Type I error. By appealing to the bootstrap, they devise a test that overcomes the deficiency of existing tests. The command bootranktest implements the two-step version of their test, and also the analytic version if chosen. The command also accommodates data with temporal and cluster dependence.

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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
1Chen, Q., and Z. Fang (2019) Improved Inference on the Rank of a Matrix self1.000103100%
2Kleibergen, F., and R. Paap (2006) Generalized Reduced Rank Tests Using the Singular Value Decomposition1.00053100%
3Robin, J.-M., and R. J. Smith (2000) Tests of Rank0.73732100%
4Cameron, A. C., J. B. Gelbach, and D. L. Miller (2008) Bootstrap-based improvements for inference with clustered errors0.40511100%
5Kleibergen, F., M. Schaffer, and F. Windmeijer (2020) RANKTEST: Stata module to test the rank of a matrix0.40511100%
6Kunsch, H. R (1989) The Jackknife and the Bootstrap for General Stationary Observations0.40511100%
7Wu, C. F. J (1986) Jackknife, Bootstrap and Other Resampling Methods in Regression Analysis0.40511100%

Showing the top 7 of 7 scored citations.