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We propose a specification test for a wide range of parametric models for the conditional distribution function of an outcome variable given a vector of covariates. The test is based on the Cramer-von Mises distance between an unrestricted estimate of the joint distribution function of the data,...
Persistent link: https://www.econbiz.de/10009531435
developed in the literature. Next, we go beyond testing by defining and estimating the minimal deviations from rational …
Persistent link: https://www.econbiz.de/10011951089
Standard income inequality indices can be interpreted as a measure of welfare loss entailed in departures from equality of outcomes, for egalitarian social welfare functions defined on the distribution of outcomes. But such a welfare interpretation has been criticized for a long time on the...
Persistent link: https://www.econbiz.de/10011641764
This paper is concerned with testing the time series implications of the capital asset pricing model (CAPM) due to … during episodes of market inefficiencies. -- CAPM ; testing for alpha ; market efficiency ; long/short equity returns ; large …
Persistent link: https://www.econbiz.de/10009535779
The paper proposes and applies statistical tests for poverty dominance that check for whether poverty comparisons can be made robustly over ranges of poverty lines and classes of poverty indices. This helps provide both normative and statistical confidence in establishing poverty rankings across...
Persistent link: https://www.econbiz.de/10003777918
The Regression Kink (RK) design is an increasingly popular empirical method, with more than 20 studies circulated using RK in the last 5 years since the initial circulation of Card, Lee, Pei and Weber (2012). We document empirically that these estimates, which typically use local linear...
Persistent link: https://www.econbiz.de/10010379273
We propose an Adjusted Quasi-Score (AQS) method for constructing tests for homoskedasticity in spatial econometric models. We first obtain an AQS function by adjusting the score-type function from the given model to achieve unbiasedness, and then develop an Outer-Product-of-Martingale-Difference...
Persistent link: https://www.econbiz.de/10012305035
Researchers are often interested in estimating the causal effect of some treatment on individual criminality. For example, two recent relatively prominent papers have attempted to estimate the respective direct effects of marriage and gang participation on individual criminal activity. One...
Persistent link: https://www.econbiz.de/10003895082
Asymptotic and bootstrap tests are studied for testing whether there is a relation of stochastic dominance between two … useful form of dominance relation that we can seek to infer in many settings. One testing procedure that we consider is based …
Persistent link: https://www.econbiz.de/10003301664
This paper considers testing the hypothesis that errors in a panel data model are weakly cross sectionally dependent …
Persistent link: https://www.econbiz.de/10009534988