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Estimation for conditional moment models based on martingale difference divergence

Kunyang Song, Feiyu Jiang, Ke Zhu

arXiv 17 Apr 2024 · Econometrics · publishedJournal of Time Series Analysis (2024)

arXiv:2404.11092 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We provide a new estimation method for conditional moment models via the martingale difference divergence (MDD).Our MDD-based estimation method is formed in the framework of a continuum of unconditional moment restrictions. Unlike the existing estimation methods in this framework, the MDD-based estimation method adopts a non-integrable weighting function, which could grab more information from unconditional moment restrictions than the integrable weighting function to enhance the estimation efficiency. Due to the nature of shift-invariance in MDD, our MDD-based estimation method can not identify the intercept parameters. To overcome this identification issue, we further provide a two-step estimation procedure for the model with intercept parameters. Under regularity conditions, we establish the asymptotics of the proposed estimators, which are not only easy-to-implement with analytic asymptotic variances, but also applicable to time series data with an unspecified form of conditional heteroskedasticity. Finally, we illustrate the usefulness of the proposed estimators by simulations and two real examples.

Citation extraction

29
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appendix boundary found by appendix_titled_section at “Appendix: Proofs of Theorems \ref{thm1}--\ref{thm2} and \ref{thm3}” · 64% 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
1Domínguez, M. A. and Lobato, I. N (2004) Consistent estimation of models defined by conditional moment restrictions1.000155100%
2Tsyawo, E. S (2023) Feasible IV regression without excluded instruments0.87462100%
3Shao, X. and Zhang, J (2014) Martingale difference correlation and its use in high-dimensional variable screening0.8434375%
4Tsay, R. S (2005) Analysis of Financial Time Series0.81142100%
5Newey, W. K (1993) Efficient estimation of models with conditional moment restrictions0.64422100%
6Li, D., Ling, S. and Zhang, R (2016) On a threshold double autoregressive model0.58531100%
7Escanciano, J. C (2018) A simple and robust estimator for linear regression models with strictly exogenous instruments0.51121100%
8Antoine, B. and Sun, X (2022) Partially linear models with endogeneity: A conditional moment-based approach0.40511100%
9Bennett, A. and Kallus, N (2023) The variational method of moments0.40511100%
10Bierens, H. J (1982) Consistent model specification tests0.40511100%

Showing the top 10 of 28 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
1A Distance Covariance-based Estimator0.51122