Nearly Optimal Tests When a Nuisance Parameter Is Present Under the Null Hypothesis.

This paper considers nonstandard hypothesis testing problems that involve a nuisance parameter. We establish an upper bound on the weighted average power of all valid tests, and develop a numerical algorithm that determines a feasible test with power close to the bound. The approach is illustrated i...

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Publicado en:Econometrica Vol. 83; no. 2; pp. 771 - 812
Autores principales: Elliott, Graham, Müller, Ulrich K., Watson, Mark W.
Formato: Artículo
Publicado: Wiley-Blackwell Mar2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Mar2015
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      pub: Wiley-Blackwell
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        101868367
        10.3982/ECTA10535
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        atl: Nearly Optimal Tests When a Nuisance Parameter Is Present Under the Null Hypothesis.
      aug:
        au:
          Elliott, Graham
          Müller, Ulrich K.
          Watson, Mark W.
        affil:
          University of California, San Diego
          Dept. of Economics, Princeton University
          NBER
      su:
        Parameter estimation
        Boundary value problems
        Gaussian function
        Gaussian distribution
        Regression analysis
      sug:
        subj:
          Parameter estimation
          Boundary value problems
          Gaussian function
          Gaussian distribution
          Regression analysis
      keyword:
        composite hypothesis
        Least favorable distribution
        maximin tests
        composite hypothesis
        Least favorable distribution
        maximin tests
      ab: This paper considers nonstandard hypothesis testing problems that involve a nuisance parameter. We establish an upper bound on the weighted average power of all valid tests, and develop a numerical algorithm that determines a feasible test with power close to the bound. The approach is illustrated in six applications: inference about a linear regression coefficient when the sign of a control coefficient is known; small sample inference about the difference in means from two independent Gaussian samples from populations with potentially different variances; inference about the break date in structural break models with moderate break magnitude; predictability tests when the regressor is highly persistent; inference about an interval identified parameter; and inference about a linear regression coefficient when the necessity of a control is in doubt.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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