Echenique, Federico; Komunjer, Ivana - In: Econometrica 77 (2009) 4, pp. 1281-1297
This paper proposes a method for testing complementarities between explanatory and dependent variables in a large class of economic models. The proposed test is based on the monotone comparative statics (MCS) property of equilibria. Our main result is that MCS produces testable implications on...