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Main Author: Liu, Weiguang
Format: Preprint
Published: 2024
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Online Access:https://arxiv.org/abs/2411.16978
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author Liu, Weiguang
author_facet Liu, Weiguang
contents We establish normal approximation in the Wasserstein metric for both non-degenerate and degenerate second-order U-statistics under cross-sectional dependence using Stein's method. For the non-degenerate case, our results extend recent studies on the asymptotic properties of sums of cross-sectionally dependent random variables. The degenerate case is more challenging due to the additional dependence induced by the nonlinearity of the U-statistic kernel. Through a specific implementation of Stein's method, we derive convergence rates under conditions on the mixing rate, the sparsity of the cross-sectional dependence structure, and the moments of the U-statistic kernel. Finally, we demonstrate the application of our theoretical results with a nonparametric specification test for data with cross-sectional dependence.
format Preprint
id arxiv_https___arxiv_org_abs_2411_16978
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Normal Approximation for U-Statistics with Cross-Sectional Dependence
Liu, Weiguang
Econometrics
We establish normal approximation in the Wasserstein metric for both non-degenerate and degenerate second-order U-statistics under cross-sectional dependence using Stein's method. For the non-degenerate case, our results extend recent studies on the asymptotic properties of sums of cross-sectionally dependent random variables. The degenerate case is more challenging due to the additional dependence induced by the nonlinearity of the U-statistic kernel. Through a specific implementation of Stein's method, we derive convergence rates under conditions on the mixing rate, the sparsity of the cross-sectional dependence structure, and the moments of the U-statistic kernel. Finally, we demonstrate the application of our theoretical results with a nonparametric specification test for data with cross-sectional dependence.
title Normal Approximation for U-Statistics with Cross-Sectional Dependence
topic Econometrics
url https://arxiv.org/abs/2411.16978