arXiv 10 Jun 2025 · Econometrics
arXiv:2506.08914 · PDF · DOI · OpenAlex · Extracted main text
We propose tests for the convexity/linearity/concavity of a transformation of the dependent variable in a semiparametric transformation model. These tests can be used to verify monotonicity of the treatment effect, or, equivalently, concavity/convexity of the outcome with respect to the treatment, in (quasi-)experimental settings. Our procedure does not require estimation of the transformation or the distribution of the error terms, thus it is easy to implement. The statistic takes the form of a U statistic or a localised U statistic, and we show that critical values can be obtained by bootstrapping. In our application we test the convexity of loan demand with respect to the interest rate using experimental data from South Africa.
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| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Chen, Songnian (2002) Rank Estimation of Transformation Models | 0.843 | 4 | 3 | 75% |
| 2 | Subhashis Ghosal and Arusharka Sen and Aad W. van der Vaart (2000) Testing Monotonicity of Regression | 0.843 | 4 | 3 | 75% |
| 3 | Szydłowski, Arkadiusz (2020) TESTING A PARAMETRIC TRANSFORMATION MODEL VERSUS A NONPARAMETRIC ALTERNATIVE | 0.754 | 7 | 4 | 43% |
| 4 | Karlan, Dean S. and Zinman, Jonathan (2008) Credit Elasticities in Less-Developed Economies: Implications for Microfinance | 0.693 | 5 | 1 | 100% |
| 5 | Jason Abrevaya and Wei Jiang (2005) A Nonparametric Approach to Measuring and Testing Curvature | 0.644 | 2 | 2 | 100% |
| 6 | Chen, Xiaohui and Kato, Kengo (2020) Jackknife multiplier bootstrap: finite sample approximations to the U-process supremum with applications | 0.644 | 2 | 2 | 100% |
| 7 | Alberto Abadie (2002) Bootstrap Tests for Distributional Treatment Effects in Instrumental Variable Models | 0.405 | 1 | 1 | 100% |
| 8 | Abrevaya, Jason and Hausman, Jerry A. and Khan, Shakeeb (2010) Testing for Causal Effects in a Generalized Regression Model With Endogenous Regressors | 0.405 | 1 | 1 | 100% |
| 9 | Card, David and Chetty, Raj and Weber, Andrea (2007) The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job? | 0.405 | 1 | 1 | 100% |
| 10 | Cavaliere, Giuseppe and Georgiev, Iliyan (2020) Inference Under Random Limit Bootstrap Measures | 0.405 | 1 | 1 | 100% |
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