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simulation study shows that both methods have more accurate coverage than alternative methods of inference. An empirical study of …
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inference in these models. Specifically, we consider a local misspecification framework in which specification errors are …
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We experimentally study how people form predictive models of simple data generating processes (DGPs), by showing subjects data sets and asking them to predict future outputs. We find that subjects: (i) often fail to predict in this task, indicating a failure to form a model, (ii) often cannot...
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misspecification. However, degeneracy of RV invalidates inference. With a novel definition of weak instruments for testing, we connect …
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