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Testing Goodness-of-Fit for Conditional Distributions: A New Perspective based on Principal Component Analysis

Cui Rui, Li Yuhao

arXiv 15 Mar 2024 · Econometrics

arXiv:2403.10352 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper introduces a novel goodness-of-fit test technique for parametric conditional distributions. The proposed tests are based on a residual marked empirical process, for which we develop a conditional Principal Component Analysis. The obtained components provide a basis for various types of new tests in addition to the omnibus one. Component tests that based on each component serve as experts in detecting certain directions. Smooth tests that assemble a few components are also of great use in practice. To further improve testing performance, we introduce a component selection approach, aiming to identify the most contributory components. The finite sample performance of the proposed tests is illustrated through Monte Carlo experiments.

Citation extraction

21
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appendix boundary found by appendix_command · 84% 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
1Andrews, Donald WK (1997) A conditional Kolmogorov test0.87452100%
2Bierens, Herman J (1982) Consistent model specification tests0.87452100%
3Bierens, Herman J and Li Wang (2012) Integrated conditional moment tests for parametric conditional distributions0.73732100%
4Durbin, James and Martin Knott (1972) Components of Cramér–von Mises statistics0.73732100%
5Escanciano, J Carlos (2006) A consistent diagnostic test for regression models using projections0.73732100%
6Stute, Winfried (1997) Nonparametric model checks for regression0.73732100%
7Bierens, Herman J and Werner Ploberger (1997) Asymptotic theory of integrated conditional moment tests0.64422100%
8Delgado, Miguel A and Wenceslao González Manteiga (2001) Significance testing in nonparametric regression based on the bootstrap0.64422100%
9Durbin, James, Martin Knott, and CC Taylor (1975) Components of Cramér-Von Mises Statistics0.64422100%
10Fan, Yanqin and Qi Li (2000) Consistent model specification tests: Kernel-based tests versus Bierens' ICM tests0.64422100%

Showing the top 10 of 22 scored citations.