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Inference on Partially Identified Parameters with Separable Nuisance Parameters: a Two-Stage Method

Xunkang Tian

arXiv 27 Aug 2025 · Econometrics

arXiv:2508.19853 · PDF · Extracted main text

Abstract

This paper develops a two-stage method for inference on partially identified parameters in moment inequality models with separable nuisance parameters. In the first stage, the nuisance parameters are estimated separately, and in the second stage, the identified set for the parameters of interest is constructed using a refined chi-squared test with variance correction that accounts for the first-stage estimation error. We establish the asymptotic validity of the proposed method under mild conditions and characterize its finite-sample properties. The method is broadly applicable to models where direct elimination of nuisance parameters is difficult or introduces conservativeness. Its practical performance is illustrated through an application: structural estimation of entry and exit costs in the U.S. vehicle market based on Wollmann (2018).

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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
1Wollmann, T. G (2018) Trucks without bailouts: Equilibrium product characteristics for commercial vehicles0.92844100%
2Cox, G. and X. Shi (2023) Simple adaptive size-exact testing for full-vector and subvector inference in moment inequality models0.80917353%
3Ho, K. and A. Pakes (2014) Hospital choices, hospital prices, and financial incentives to physicians0.73732100%
4Kohler, D. A (1967) Projections of convex polyhedral sets0.64422100%
5Andrews, D. W. and G. Soares (2010) Inference for parameters defined by moment inequalities using generalized moment selection0.40511100%
6Andrews, I., J. Roth, and A. Pakes (2019) Inference for linear conditional moment inequalities, Tech0.40511100%
7Berry, S., J. Levinsohn, and A. Pakes (1995) Automobile Prices in Market Equilibrium0.40511100%
8Bugni, F. A., I. A. Canay, and X. Shi (2017) Inference for subvectors and other functions of partially identified parameters in moment inequality models0.40511100%
9Canay, I. A (2010) EL inference for partially identified models: Large deviations optimality and bootstrap validity0.40511100%
10Chen, X., T. M. Christensen, and E. Tamer (2018) Monte Carlo confidence sets for identified sets0.40511100%

Showing the top 10 of 16 scored citations.