Finite Sample Inference in Incomplete Models

Fuente: arXiv
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Autores principales: Li, Lixiong, Henry, Marc
Formato: Preprint
Publicado: 2022
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author Li, Lixiong
Henry, Marc
author_facet Li, Lixiong
Henry, Marc
contents We propose confidence regions for the parameters of incomplete models with exact coverage of the true parameter in finite samples. Our confidence region inverts a test, which generalizes Monte Carlo tests to incomplete models. The test statistic is a discrete analogue of a new optimal transport characterization of the sharp identified region. Both test statistic and critical values rely on simulation drawn from the distribution of latent variables and are computed using solutions to discrete optimal transport, hence linear programming problems. We also propose a fast preliminary search in the parameter space with an alternative, more conservative yet consistent test, based on a parameter free critical value.
format Preprint
id arxiv_https___arxiv_org_abs_2204_00473
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle Finite Sample Inference in Incomplete Models
Li, Lixiong
Henry, Marc
Econometrics
We propose confidence regions for the parameters of incomplete models with exact coverage of the true parameter in finite samples. Our confidence region inverts a test, which generalizes Monte Carlo tests to incomplete models. The test statistic is a discrete analogue of a new optimal transport characterization of the sharp identified region. Both test statistic and critical values rely on simulation drawn from the distribution of latent variables and are computed using solutions to discrete optimal transport, hence linear programming problems. We also propose a fast preliminary search in the parameter space with an alternative, more conservative yet consistent test, based on a parameter free critical value.
title Finite Sample Inference in Incomplete Models
topic Econometrics
url https://arxiv.org/abs/2204.00473