arXiv 24 Aug 2022 · Econometrics · 3 citations (OpenAlex)
arXiv:2208.11281 · PDF · DOI · OpenAlex · Extracted main text
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.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Kaido, H. and Y. Zhang (2019) Robust Likelihood-Ratio Tests for Incomplete Economic Models self | 0.961 | 9 | 3 | 89% |
| 2 | Galichon, A. and M. Henry (2011) Set identification in models with multiple equilibria | 0.843 | 4 | 3 | 75% |
| 3 | Ciliberto, F. and E. Tamer (2009) Market Structure and Multiple Equilibria in Airline Markets | 0.843 | 3 | 3 | 100% |
| 4 | Bugni, F., I. Canay, and X. Shi (2017) Inference for Subvectors and Other Functions of Partially Identified Parameters in Moment Inequality Models | 0.737 | 3 | 2 | 100% |
| 5 | Kline, B. and E. Tamer (2016) Bayesian inference in a class of partially identified models | 0.693 | 5 | 1 | 100% |
| Wooldridge | unmatched citation key Wooldridge | 0.644 | 4 | 1 | 100% |
| 7 | Bresnahan, T. F. and P. C. Reiss (1991) Empirical models of discrete games | 0.644 | 2 | 2 | 100% |
| 8 | Molchanov, I. S (2005) Theory of random sets | 0.644 | 2 | 2 | 100% |
| 9 | Molinari, F (2020) Microeconometrics with Partial Identification | 0.644 | 2 | 2 | 100% |
| 10 | Wooldridge, J. M (2014) Quasi-Maximum Likelihood Estimation and Testing for Nonlinear Models with Endogenous Explanatory Variables | 0.644 | 2 | 2 | 100% |
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.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Information Based Inference in Models with Set-Valued Predictions and Misspecification | 0.511 | 2 | 2 |
| 2 | An optimal test for strategic interaction in social and economic network formation between heterogeneous agents | 0.405 | 1 | 1 |