Testing a parametric quantile-regression model with an endogenous explanatory variable against a nonparametric alternative

A-Tier
Journal: Journal of Econometrics
Year: 2009
Volume: 152
Issue: 2
Pages: 141-152

Authors (2)

Horowitz, Joel L. (not in RePEc) Lee, Sokbae (Centre for Microdata Methods)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper is concerned with inference about a function g that is identified by a conditional quantile restriction involving instrumental variables. The paper presents a test of the hypothesis that g belongs to a finite-dimensional parametric family against a nonparametric alternative. The test is not subject to the ill-posed inverse problem of nonparametric instrumental variable estimation. Under mild conditions, the test is consistent against any alternative model. In large samples, its power is arbitrarily close to 1 uniformly over a class of alternatives whose distance from the null hypothesis is proportional to n-1/2, where n is the sample size. Monte Carlo simulations illustrate the finite-sample performance of the test.

Technical Details

RePEc Handle
repec:eee:econom:v:152:y:2009:i:2:p:141-152
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25