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Simple Inference on a Simplex-Valued Weight

Nathan Canen, Kyungchul Song

arXiv 26 Jan 2025 · Econometrics

arXiv:2501.15692 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In many applications, the parameter of interest involves a simplex-valued weight which is identified as a solution to an optimization problem. Examples include synthetic control methods with group-level weights and various methods of model averaging and forecast combination. The simplex constraint on the weight poses a challenge in statistical inference due to the constraint potentially binding. In this paper, we propose a simple method of constructing a confidence set for the weight and prove that the method is asymptotically uniformly valid. The procedure does not require tuning parameters or simulations to compute critical values. The confidence set accommodates both the cases of point-identification or set-identification of the weight. We illustrate the method with an empirical example.

Citation extraction

37
references
74
in-text mentions
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distinct cited
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main-text words

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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
1Cox and Shi (2023) Simple Adaptive Size-exact Testing for Full-vector and Subvector Inference in Moment Inequality Models0.69371100%
2Gunsilius (2023) Distributional Synthetic Controls0.69371100%
3Hansen (2007) Least Squares Model Averaging0.64441100%
4Al Mohamad, van Zwet, Cator, and Goeman (2020) Adaptive Critical Value for Constrained Likelihood Ratio Testing0.6308175%
5Ketz (2018) Subvector Inference When the True Parameter Vector May Be Near or at the Boundary0.58531100%
6Li (2025) Inference for Constrained Extremum Estimators0.58531100%
7Timmermann (2006) Forecast Combinations0.58531100%
8Abadie (2021) Using Synthetic Controls: Feasibility, Data Requirements, and Methodological Aspects0.51121100%
9Andrews (1999) Estimation When a Parameter Is on a Boundary0.51121100%
10Chen (2020) A Distributional Synthetic Control Method for Policy Evaluation0.51121100%

Showing the top 10 of 37 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
12307.051220.64441
22510.261060.51151