EconBase
← All papers

Weak Identification in Low-Dimensional Factor Models with One or Two Factors

Gregory Cox

arXiv 1 Nov 2022 · Econometrics · publishedThe Review of Economics and Statistics (2024) · 4 citations (OpenAlex)

arXiv:2211.00329 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper describes how to reparameterize low-dimensional factor models with one or two factors to fit weak identification theory developed for generalized method of moments models. Some identification-robust tests, here called "plug-in" tests, require a reparameterization to distinguish weakly identified parameters from strongly identified parameters. The reparameterizations in this paper make plug-in tests available for subvector hypotheses in low-dimensional factor models with one or two factors. Simulations show that the plug-in tests are less conservative than identification-robust tests that use the original parameterization. An empirical application to a factor model of parental investments in children is included.

Citation extraction

43
references
102
in-text mentions
43
distinct cited
1
self-citations
13,365
main-text words

appendix boundary found by none_found · 100% 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
1Kleibergen, F (2005) Testing parameters in GMM without assuming that they are identified1.00084100%
2Cox, G (2022) Weak identification with bounds in a class of minimum distance models self1.00074100%
3Stock, J. and Wright, J (2000) GMM with weak identification1.00064100%
4Anderson, T. and Rubin, H (1956) Statistical inference in factor analysis1.00063100%
5Attanasio, O., Cattan, S., Fitzsimons, E., Meghir, C., and Rubio-Cod… (2020) Estimating the production function for human capital: Results from a randomized controlled trial in Colombia0.87492100%
6Han, S. and McCloskey, A (2019) Estimation and inference with a (nearly) singular Jacobian0.87462100%
7Chaudhuri, S. and Zivot, E (2011) A new method of projection-based inference in GMM with weakly identified nuisance parameters0.84333100%
8Andrews, I. and Mikusheva, A (2016) A geometric approach to nonlinear econometric models0.81142100%
9Andrews, I (2018) Valid two-step identification-robust confidence sets for GMM0.81142100%
10Andrews, D (2017) Identification-robust subvector inference0.73732100%

Showing the top 10 of 43 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
1Weak Identification with Bounds in a Class of Minimum Distance Models1.000155
2Robust Estimation and Inference in Panels with Interactive Fixed Effects0.64441