A consistent nonparametric test of affiliation in auction models
We propose a new nonparametric test of affiliation, a strong form of positive dependence with independence as a special, knife-edge, case. The test is consistent against all departures from the null of affiliation, and its null distribution is standard normal. Like most nonparametric tests, a sample-size dependent input parameter is needed. We provide an informal procedure for choosing the input parameter and evaluate the test's performance using a simulation study. Our test can be used to test the fundamental assumptions of the auctions literature. We implement our test empirically using the Outer Continental Shelf (OCS) auction data.
Year of publication: |
2010
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Authors: | Jun, Sung Jae ; Pinkse, Joris ; Wan, Yuanyuan |
Published in: |
Journal of Econometrics. - Elsevier, ISSN 0304-4076. - Vol. 159.2010, 1, p. 46-54
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Publisher: |
Elsevier |
Keywords: | Auction models Affiliation Empirical distributions Nonparametric tests |
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