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Marginal homogeneity tests with panel data

Federico Bugni, Jackson Bunting, Muyang Ren

arXiv 28 Aug 2024 · Econometrics

arXiv:2408.15862 · PDF · DOI · OpenAlex · Extracted main text

Abstract

A panel dataset satisfies marginal homogeneity if the time-specific marginal distributions are homogeneous or time-invariant. Marginal homogeneity is relevant in economic settings such as dynamic discrete games. In this paper, we propose several tests for the hypothesis of marginal homogeneity and investigate their properties. We consider an asymptotic framework in which the number of individuals n in the panel diverges, and the number of periods T is fixed. We implement our tests by comparing a studentized or non-studentized T-sample version of the Cramer-von Mises statistic with a suitable critical value. We propose three methods to construct the critical value: asymptotic approximations, the bootstrap, and time permutations. We show that the first two methods result in asymptotically exact hypothesis tests. The permutation test based on a non-studentized statistic is asymptotically exact when T=2, but is asymptotically invalid when T>2. In contrast, the permutation test based on a studentized statistic is always asymptotically exact. Finally, under a time-exchangeability assumption, the permutation test is exact in finite samples, both with and without studentization.

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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
1Igami, Mitsuru and Yang, Nathan (2016) Unobserved heterogeneity in dynamic games: Cannibalization and preemptive entry of hamburger chains in Canada1.00073100%
2Friedrich, Sarah and Brunner, Edgar and Pauly, Markus (2017) Permuting longitudinal data in spite of the dependencies0.87452100%
3E. L. Lehmann and J. P. Romano Testing Statistical Hypothesis: Fourth edition0.7547343%
4M. Ditzhaus and D. Gaigall (2022) Testing marginal homogeneity in Hilbert spaces with applications to stock market returns0.69351100%
5Pauly, Markus and Brunner, Edgar and Konietschke, Frank (2015) Asymptotic permutation tests in general factorial designs0.64441100%
6E. Chung and J.P. Romano Exact and Asymptotically Robust Permutation Tests0.64422100%
7Kiefer, J (1959) K-sample analogues of the Kolmogorov-Smirnov and Cramér-V. Mises tests0.64422100%
8Wyłupek, Grzegorz (2023) A nonparametric test for paired data0.64422100%
9Roth, Jonathan and Sant'Anna, Pedro HC (2023) When is parallel trends sensitive to functional form?0.58531100%
10E. Chung and J.P. Romano Multivariate and multiple permutation tests0.5114225%

Showing the top 10 of 30 scored citations.