EconBase
← All papers

Robust Tests of Model Incompleteness in the Presence of Nuisance Parameters

Shuowen Chen, Hiroaki Kaido

arXiv 24 Aug 2022 · Econometrics · 3 citations (OpenAlex)

arXiv:2208.11281 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Economic models may exhibit incompleteness depending on whether or not they admit certain policy-relevant features such as strategic interaction, self-selection, or state dependence. We develop a novel test of model incompleteness and analyze its asymptotic properties. A key observation is that one can identify the least-favorable parametric model that represents the most challenging scenario for detecting local alternatives without knowledge of the selection mechanism. We build a robust test of incompleteness on a score function constructed from such a model. The proposed procedure remains computationally tractable even with nuisance parameters because it suffices to estimate them only under the null hypothesis of model completeness. We illustrate the test by applying it to a market entry model and a triangular model with a set-valued control function.

Citation extraction

71
references
201
in-text mentions
156
distinct cited
2
self-citations
14,823
main-text words

appendix boundary found by appendix_command · 60% 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
1Kaido, H. and Y. Zhang (2019) Robust Likelihood-Ratio Tests for Incomplete Economic Models self0.9619389%
2Galichon, A. and M. Henry (2011) Set identification in models with multiple equilibria0.8434375%
3Ciliberto, F. and E. Tamer (2009) Market Structure and Multiple Equilibria in Airline Markets0.84333100%
4Bugni, F., I. Canay, and X. Shi (2017) Inference for Subvectors and Other Functions of Partially Identified Parameters in Moment Inequality Models0.73732100%
5Kline, B. and E. Tamer (2016) Bayesian inference in a class of partially identified models0.69351100%
Wooldridgeunmatched citation key Wooldridge0.64441100%
7Bresnahan, T. F. and P. C. Reiss (1991) Empirical models of discrete games0.64422100%
8Molchanov, I. S (2005) Theory of random sets0.64422100%
9Molinari, F (2020) Microeconometrics with Partial Identification0.64422100%
10Wooldridge, J. M (2014) Quasi-Maximum Likelihood Estimation and Testing for Nonlinear Models with Endogenous Explanatory Variables0.64422100%

Showing the top 10 of 156 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Information Based Inference in Models with Set-Valued Predictions and Misspecification0.51122
2An optimal test for strategic interaction in social and economic network formation between heterogeneous agents0.40511