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Robust Inference in Locally Misspecified Bipartite Networks

Luis E. Candelaria, Yichong Zhang

arXiv 20 Mar 2024 · Econometrics

arXiv:2403.13725 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper introduces a methodology to conduct robust inference in bipartite networks under local misspecification. We focus on a class of dyadic network models with misspecified conditional moment restrictions. The framework of misspecification is local, as the effect of misspecification varies with the sample size. We utilize this local asymptotic approach to construct a robust estimator that is minimax optimal for the mean square error within a neighborhood of misspecification. Additionally, we introduce bias-aware confidence intervals that account for the effect of the local misspecification. These confidence intervals have the correct asymptotic coverage for the true parameter of interest under sparse network asymptotics. Monte Carlo experiments demonstrate that the robust estimator performs well in finite samples and sparse networks. As an empirical illustration, we study the formation of a scientific collaboration network among economists.

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51
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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
1Graham, B. S (2022) Sparse network asymptotics for logistic regression0.96510590%
2Armstrong, T. B. and M. Kolesár (2021) Sensitivity analysis using approximate moment condition models0.87492100%
3Bonhomme, S. and M. Weidner (2022) Minimizing sensitivity to model misspecification0.87482100%
4Andrews, I., M. Gentzkow, and J. M. Shapiro (2017) Measuring the sensitivity of parameter estimates to estimation moments0.81142100%
5Hsieh, C.-S., M. Konig, X. Liu, and C. Zimmermann (2022) Collaboration in bipartite networks, Tech0.81142100%
6Conley, T. G., C. B. Hansen, and P. E. Rossi (2012) Plausibly exogenous0.73732100%
7Goyal, S., M. J. Van Der Leij, and J. L. Moraga-González (2006) Economics: An emerging small world0.73732100%
8Anderson, K. A. and S. Richards-Shubik (2022) Collaborative production in science: An empirical analysis of coauthorships in economics0.64422100%
9Andrews, I., M. Gentzkow, and J. M. Shapiro (2020) On the informativeness of descriptive statistics for structural estimates0.64422100%
10Armstrong, T. B., M. Weidner, and A. Zeleneev (2022) Robust Estimation and Inference in Panels with Interactive Fixed Effects0.64422100%

Showing the top 10 of 51 scored citations.