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Main Authors: Andrews, Isaiah, Li, Ricky, Shang, Yucheng
Format: Preprint
Published: 2026
Subjects:
Online Access:https://arxiv.org/abs/2604.23176
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author Andrews, Isaiah
Li, Ricky
Shang, Yucheng
author_facet Andrews, Isaiah
Li, Ricky
Shang, Yucheng
contents We study optimal estimation when the likelihood may be misspecified. Building on tools from the theory of decision-making under uncertainty, we analyze a class of axiomatically grounded optimality criteria which nests several existing misspecification-robust objectives. Within this class, we introduce the constrained multiplier criterion, which allows for flexible misspecification attitudes. We prove a local asymptotic minimax theorem for this criterion, extending a classical efficiency bound to a limit experiment which incorporates moment-constrained misspecification concerns. We characterize asymptotically optimal estimators as Bayes decision rules under a flat prior and an exponentially tilted likelihood that incorporates the moment constraints, and show that feasible plug-in analogs are asymptotically optimal.
format Preprint
id arxiv_https___arxiv_org_abs_2604_23176
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Misspecification-Averse Estimation
Andrews, Isaiah
Li, Ricky
Shang, Yucheng
Econometrics
We study optimal estimation when the likelihood may be misspecified. Building on tools from the theory of decision-making under uncertainty, we analyze a class of axiomatically grounded optimality criteria which nests several existing misspecification-robust objectives. Within this class, we introduce the constrained multiplier criterion, which allows for flexible misspecification attitudes. We prove a local asymptotic minimax theorem for this criterion, extending a classical efficiency bound to a limit experiment which incorporates moment-constrained misspecification concerns. We characterize asymptotically optimal estimators as Bayes decision rules under a flat prior and an exponentially tilted likelihood that incorporates the moment constraints, and show that feasible plug-in analogs are asymptotically optimal.
title Misspecification-Averse Estimation
topic Econometrics
url https://arxiv.org/abs/2604.23176