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Uniform Validity of the Subset Anderson-Rubin Test under Heteroskedasticity and Nonlinearity

Atsushi Inoue, Òscar Jordà, Guido M. Kuersteiner

arXiv 1 Jul 2025 · Econometrics

arXiv:2507.01167 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We consider the Anderson-Rubin (AR) statistic for a general set of nonlinear moment restrictions. The statistic is based on the criterion function of the continuous updating estimator (CUE) for a subset of parameters not constrained under the Null. We treat the data distribution nonparametrically with parametric moment restrictions imposed under the Null. We show that subset tests and confidence intervals based on the AR statistic are uniformly valid over a wide range of distributions that include moment restrictions with general forms of heteroskedasticity. We show that the AR based tests have correct asymptotic size when parameters are unidentified, partially identified, weakly or strongly identified. We obtain these results by constructing an upper bound that is using a novel perturbation and regularization approach applied to the first order conditions of the CUE. Our theory applies to both cross-sections and time series data and does not assume stationarity in time series settings or homogeneity in cross-sectional settings.

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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
1Stock, J., Wright, J (2000) Gmm with weak identification1.000103100%
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5de Jong, R.M., Davidson, J (2000) Consistency of kernel estimators of heteroscedastic and autocorrelated covariance matrices0.92843100%
6Andrews, D.W.K., Guggenberger, P (2019) Identification– and singularity–robust inference for moment condition models0.87452100%
7Donald, S.G., Newey, W.K (2000) A jackknife interpretation of the continuous updating estimator0.87452100%
8Andrews, D.W.K., Cheng, X., Guggenberger, P (2020) Generic results for establishing the asymptotic size of confidence sets and tests0.8434375%
9Kleibergen, F., Mavroeidis, S (2009) Weak instrument robust tests in gmm and the new keynesian phillips curve0.81142100%
10van der Vaart, A.W., Wellner, J.A (1996) Weak Convergence and Empirical Processes0.7374275%

Showing the top 10 of 56 scored citations.