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Efficient Estimation of Structural Models via Sieves

Yao Luo, Peijun Sang

arXiv 28 Apr 2022 · Econometrics · publishedJournal of Econometrics (2026)

arXiv:2204.13488 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a class of sieve-based efficient estimators for structural models (SEES), which approximate the solution using a linear combination of basis functions and impose equilibrium conditions as a penalty to determine the best-fitting coefficients. Our estimators avoid the need to repeatedly solve the model, apply to a broad class of models, and are consistent, asymptotically normal, and asymptotically efficient. Moreover, they solve unconstrained optimization problems with fewer unknowns and offer convenient standard error calculations. As an illustration, we apply our method to an entry game between Walmart and Kmart.

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33
references
55
in-text mentions
33
distinct cited
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11,895
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
1Su, C.-L. and K. L. Judd (2012) Constrained optimization approaches to estimation of structural models0.84333100%
2Aguirregabiria, V. and P. Mira (2002) Swapping the nested fixed point algorithm: A class of estimators for discrete Markov decision models0.64422100%
3Chen, X (2007) Large sample sieve estimation of semi-nonparametric models0.64422100%
4Keane, M. P. and K. I. Wolpin (1994) The solution and estimation of discrete choice dynamic programming models by simulation and interpolation: Monte Carlo evidence0.64422100%
5Keane, M. P. and K. I. Wolpin (1997) The career decisions of young men0.64422100%
6Luo, Y., I. Perrigne, and Q. Vuong (2018) Structural analysis of nonlinear pricing self0.64422100%
7Pesendorfer, M. and P. Schmidt-Dengler (2008) Asymptotic least squares estimators for dynamic games0.64422100%
8Van der Vaart, A. W. and J. A. Wellner (1996) Weak Convergence and Empirical Processes with Application to Statistics0.5854325%
9Berry, S., J. Levinsohn, and A. Pakes (1995) Automobile prices in market equilibrium0.51121100%
10Chen, X., M. L. Gentry, T. Li, and J. Lu (2023) b): Identification and inference in first-price auctions with risk averse bidders and selective entry0.51121100%

Showing the top 10 of 33 scored citations.