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A Robust Permutation Test for Subvector Inference in Linear Regressions

Xavier D'Haultfœuille, Purevdorj Tuvaandorj

arXiv 13 May 2022 · Econometrics · publishedQuantitative Economics (2024) · 6 citations (OpenAlex)

arXiv:2205.06713 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a new permutation test for inference on a subvector of coefficients in linear models. The test is exact when the regressors and the error terms are independent. Then, we show that the test is asymptotically of correct level, consistent and has power against local alternatives when the independence condition is relaxed, under two main conditions. The first is a slight reinforcement of the usual absence of correlation between the regressors and the error term. The second is that the number of strata, defined by values of the regressors not involved in the subvector test, is small compared to the sample size. The latter implies that the vector of nuisance regressors is discrete. Simulations and empirical illustrations suggest that the test has good power in practice if, indeed, the number of strata is small compared to the sample size.

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38
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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
1Lei, L. and P. J. Bickel (2021) An Assumption-Free Exact Test For Fixed-Design Linear Models With Exchangeable Errors1.00074100%
2DiCiccio, C. J. and J. P. Romano (2017) Robust Permutation Tests for Correlation and Regression Coefficients0.95021686%
3Toulis, P (2022) Invariant Inference via Residual Randomization0.92843100%
4Imbens, G. W. and D. B. Rubin (2015) Causal Inference in Statistics, Social, and Biomedical Sciences0.693101100%
5Good, P (2013) Permutation Tests: A Practical Guide to Resampling Methods for Testing Hypotheses0.64422100%
6Chen, L. H. Y., L. Goldstein, and Q.-M. Shao (2011) Normal Approximation by Stein's Method, Volume 20.5115220%
7Hansen, B (2022) Probability and Statistics for Economists0.5112250%
8Hansen, B. and S. Lee (2019) Asymptotic Theory for Clustered Samples0.5112250%
9Imbens, G. W. and P. R. Rosenbaum (2005) Robust, Accurate Confidence Intervals with a Weak Instrument: Quarter of Birth and Education0.51121100%
10Rosenbaum, P. R (1984) Conditional Permutation Tests and the Propensity Score in Observational Studies0.51121100%

Showing the top 10 of 38 scored citations.

Cited by, within the corpus

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1Fast Test Inversion for Resampling Methods1.00094
2Can we have it all? Non-asymptotically valid and asymptotically exact confidence intervals for expectations and linear regressions0.51121
3Randomization Inference: Theory and Applications0.40511
4Inference with few treated units0.40511
5Two-way Fixed Effects and Differences-in-Differences Estimators with Several Treatments0.00011