EconBase
← All papers

A Neyman-Orthogonalization Approach to the Incidental Parameter Problem

Stéphane Bonhomme, Koen Jochmans, Martin Weidner

arXiv 13 Dec 2024 · Econometrics

arXiv:2412.10304 · PDF · DOI · OpenAlex · Extracted main text

Abstract

A popular approach to perform inference on a target parameter in the presence of nuisance parameters is to construct estimating equations that are orthogonal to the nuisance parameters, in the sense that their expected first derivative is zero. Such first-order orthogonalization may, however, not suffice when the nuisance parameters are very imprecisely estimated. Leading examples where this is the case are models for panel and network data that feature fixed effects. In this paper, we show how, in the conditional-likelihood setting, estimating equations can be constructed that are orthogonal to any chosen order. Combining these equations with sample splitting yields higher-order bias-corrected estimators of target parameters. In an empirical application we apply our method to a fixed-effect model of team production and obtain estimates of complementarity in production and impacts of counterfactual re-allocations.

Citation extraction

48
references
157
in-text mentions
111
distinct cited
2
self-citations
15,014
main-text words

appendix boundary found by appendix_command · 54% 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
1Neyman, J (1959) Optimal asymptotic tests of composite hypotheses1.00053100%
2Waterman, R. P. and B. G. Lindsay (1996) Projected score methods for approximating conditional scores1.00053100%
3Ahmadpoor, M. and B. F. Jones (2019) Decoding team and individual impact in science and invention0.92843100%
4Chernozhukov, V., D. Chetverikov, M. Demirer, E. Duflo, C. Hansen, W… (2018) Double/debiased machine learning for treatment and structural parameters0.84333100%
5Mackey, L., V. Syrgkanis, and I. Zadik (2018) Orthogonal machine learning: Power and limitations0.84333100%
6Dhaene, G. and K. Jochmans (2015) Split-panel jackknife estimation of fixed-effect models0.73732100%
7Dhaene, G. and K. Jochmans (2015) Profile-score adjustments for incidental-parameter problems0.73732100%
8Hahn, J. and W. K. Newey (2004) Jackknife and analytical bias reduction for nonlinear panel models0.73732100%
9van der Vaart, A (2014) Higher order tangent spaces and influence functions0.73732100%
10Bonhomme, S (2021) Teams: Heterogeneity, sorting, and complementarity self0.64422100%

Showing the top 10 of 111 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
1HIGHER-ORDER NEYMAN ORTHOGONALITY IN MOMENT-CONDITION MODELS0.85583
2Triple/Double-Debiased Lasso0.81142
3Debiased Machine Learning for Unobserved Heterogeneity: High-Dimensional Panels and Measurement Error Models0.73732
4It's Hard to Be Normal: The Impact of Noise on Structure-agnostic Estimation0.40511
5Model Selection in Panel Data Models: A Generalization of the Vuong Test0.40511
6Jackknife Inference for Fixed Effects Models0.40511
7Bootstrap Inference in Nonlinear Panel Data Models with Interactive Fixed Effects0.40511