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Noisy, Non-Smooth, Non-Convex Estimation of Moment Condition Models

Jean-Jacques Forneron

arXiv 17 Jan 2023 · Econometrics · 2 citations (OpenAlex)

arXiv:2301.07196 · PDF · DOI · OpenAlex · Extracted main text

Abstract

A practical challenge for structural estimation is the requirement to accurately minimize a sample objective function which is often non-smooth, non-convex, or both. This paper proposes a simple algorithm designed to find accurate solutions without performing an exhaustive search. It augments each iteration from a new Gauss-Newton algorithm with a grid search step. A finite sample analysis derives its optimization and statistical properties simultaneously using only econometric assumptions. After a finite number of iterations, the algorithm automatically transitions from global to fast local convergence, producing accurate estimates with high probability. Simulated examples and an empirical application illustrate the results.

Citation extraction

64
references
100
in-text mentions
64
distinct cited
2
self-citations
14,041
main-text words

appendix boundary found by appendix_command · 43% 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
1Honoré, B. E. and Á. de Paula (2018) A new model for interdependent durations0.9507386%
2Andrews, D. W (1997) A stopping rule for the computation of generalized method of moments estimators0.8749467%
3Bruins, M., J. A. Duffy, M. P. Keane, and A. A. Smith Jr (2018) Generalized indirect inference for discrete choice models0.87452100%
4Robinson, P. M (1988) The stochastic difference between econometric statistics0.8435460%
5Chen, X. and Z. Liao (2015) Sieve semiparametric two-step GMM under weak dependence0.64422100%
6Forneron, J.-J. and L. Zhong (2022) Convexity Not Required: Estimation of Smooth Moment Condition Models self0.64422100%
7van der Vaart, A. W. and J. A. Wellner (1996) Weak Convergence and Empirical Processes0.5854325%
8Nocedal, J. and S. Wright (2006) Numerical Optimzation0.5112250%
9Ackerberg, D. A (2009) A new use of importance sampling to reduce computational burden in simulation estimation0.51121100%
10Griewank, A. O (1981) Generalized descent for global optimization0.51121100%

Showing the top 10 of 64 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
1Convexity Not Required: Estimation of Smooth Moment Condition Models0.73733
2Estimation and Inference by Stochastic Optimization0.64422
3Information Based Inference in Models with Set-Valued Predictions and Misspecification0.40511