EconBase
← All papers

Nonparametric Estimation of Truncated Conditional Expectation Functions

Tomasz Olma

arXiv 13 Sep 2021 · Econometrics · 5 citations (OpenAlex)

arXiv:2109.06150 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Truncated conditional expectation functions are objects of interest in a wide range of economic applications, including income inequality measurement, financial risk management, and impact evaluation. They typically involve truncating the outcome variable above or below certain quantiles of its conditional distribution. In this paper, based on local linear methods, a novel, two-stage, nonparametric estimator of such functions is proposed. In this estimation problem, the conditional quantile function is a nuisance parameter that has to be estimated in the first stage. The proposed estimator is insensitive to the first-stage estimation error owing to the use of a Neyman-orthogonal moment in the second stage. This construction ensures that inference methods developed for the standard nonparametric regression can be readily adapted to conduct inference on truncated conditional expectations. As an extension, estimation with an estimated truncation quantile level is considered. The proposed estimator is applied in two empirical settings: sharp regression discontinuity designs with a manipulated running variable and randomized experiments with sample selection.

Citation extraction

40
references
96
in-text mentions
40
distinct cited
0
self-citations
12,609
main-text words

appendix boundary found by appendix_command · 48% 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
1Lee, D. S (2009) Training, wages, and sample selection: Estimating sharp bounds on treatment effects1.00093100%
2Gerard, F., Rokkanen, M., and Rothe, C (2020) Bounds on treatment effects in regression discontinuity designs with a manipulated running variable0.874142100%
3Armstrong, T. B. and Kolesár, M (2020) Simple and honest confidence intervals in nonparametric regression0.8746367%
4Linton, O. and Xiao, Z (2013) Estimation of and inference about the expected shortfall for time series with infinite variance0.73732100%
5Dimitriadis, T., Bayer, S., et al (2019) A joint quantile and expected shortfall regression framework0.6443267%
6Semenova, V (2020) Better Lee bounds0.64422100%
7Shorack, G. R. et al (1974) Random means0.64422100%
8Kato, K (2012) Weighted Nadaraya–Watson estimation of conditional expected shortfall0.58510420%
9Ruppert, D. and Carroll, R. J (1980) Trimmed least squares estimation in the linear model0.5112250%
10Jones, M. C (1993) Simple boundary correction for kernel density estimation0.5112250%

Showing the top 10 of 40 scored citations.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Generalized Lee Bounds0.84333
2Doubly-Valid/Doubly-Sharp Sensitivity Analysis for Causal Inference with Unmeasured Confounding0.51122
3Heterogeneous Treatment Effect Bounds under Sample Selection with an Application to the Effects of Social Media on Political Polarization0.51121
4Lee Bounds with a Continuous Treatment in Sample Selection0.40511
5Treatment Evaluation at the Intensive and Extensive Margins0.40511
6Policy Learning under Unobserved Confounding: A Robust and Efficient Approach0.40511
7Adaptive Estimation of Aggregated Values of Conditional Linear Programs0.40511