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Under the null of valid specification, pre-tests cannot make post-test inference liberal

Clément de Chaisemartin, Xavier D'Haultfœuille

arXiv 4 Jul 2024 · Econometrics · 2 citations (OpenAlex)

arXiv:2407.03725 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Consider a parameter of interest, which can be consistently estimated under some conditions. Suppose also that we can at least partly test these conditions with specification tests. We consider the common practice of conducting inference on the parameter of interest conditional on not rejecting these tests. We show that if the tested conditions hold, conditional inference is valid, though possibly conservative. This holds generally, without imposing any assumption on the asymptotic dependence between the estimator of the parameter of interest and the specification test.

Citation extraction

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Most heavily cited references

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1Roth, Jonathan (2022) Pretest with caution: Event-study estimates after testing for parallel trends0.87452100%
2Thomas Royen (2014) A simple proof of the Gaussian correlation conjecture extended to multivariate gamma distributions0.8435360%
3van der Vaart, Aad W and Wellner, Jon A (2023) Weak convergence and empirical processes0.6444250%
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6Deryugina, Tatyana (2017) The Fiscal Cost of Hurricanes: Disaster Aid versus Social Insurance0.5113233%
7Deschênes, Olivier and Greenstone, Michael and Shapiro, Joseph S (2017) Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program0.5113233%
8Fitzpatrick, Maria D. and Lovenheim, Michael F (2014) Early Retirement Incentives and Student Achievement0.5113233%
9Gallagher, Justin (2014) Learning about an Infrequent Event: Evidence from Flood Insurance Take-Up in the United States0.5113233%
10He, Guojun and Wang, Shaoda (2017) Do College Graduates Serving as Village Officials Help Rural China?0.5113233%

Showing the top 10 of 47 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
1Integrating Diagnostic Checks into Estimation0.40511