Formulating Wald Tests of Nonlinear Restrictions

Gregory, Allan W.; Veall, Michael R.

doi:10.2307/1913221

Cited by 190 publications

(67 citation statements)

References 4 publications

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“…Using the triangle kernel function K (a) = max {0, 1 − |a|}, McCrary (2008) showed that the numera- Gregory and Veal, 1985). Similar comments apply to the Wald test based on the local likelihood estimatorθ.…”

Section: Setup and Estimationmentioning

confidence: 79%

“…On the other hand, the Wald test statistic is not invariant to the formulation of the null hypotheses and may yield opposite conclusions in finite samples (see, e.g., Gregory and Veal, 1985). 4 5 …”

Section: Theorem 31 Under Assumptions 1-5 It Holdsmentioning

confidence: 99%

“…Since the derivative of the firstorder condition (14) with respect toλ (γ) converges in probability to the positive definite matrix V , we can apply the implicit function theorem, i.e.,λ (γ) is continuously differentiable with respect to γ in a neighborhood ofγ w.p.a.1. The envelope theorem implies…”

Section: A Mathematical Appendixmentioning

confidence: 99%

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Estimation and Inference of Discontinuity in Density

Otsu

Matsushita

2013

Journal of Business & Economic Statistics

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Continuity or discontinuity of probability density functions of data often plays a fundamental role in empirical economic analysis. For example, for identification and inference of causal effects in regression discontinuity designs it is typically assumed that the density function of a conditioning variable is continuous at a cutoff point that determines assignment of a treatment. Also, discontinuity in density functions can be a parameter of economic interest, such as in analysis of bunching behaviors of taxpayers. In order to facilitate researchers to conduct valid inference for these problems, this paper extends the binning and local likelihood approaches to estimate discontinuity of density functions and proposes empirical likelihood-based tests and confidence sets for the discontinuity.In contrast to the conventional Wald-type test and confidence set using the binning estimator, our empirical likelihood-based methods (i) circumvent asymptotic variance estimation to construct the test statistics and confidence sets; (ii) are invariant to nonlinear transformations of the parameters of interest; (iii) offer confidence sets whose shapes are automatically determined by data; and (iv) admit higher-order refinements, so-called Bartlett corrections. First-and second-order asymptotic theories are developed. Simulations demonstrate the superior finite sample behaviors of the proposed methods. In an empirical application, we assess the identifying assumption of no manipulation of class sizes in the regression discontinuity design studied by Angrist and Lavy (1999).

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Section: Setup and Estimationmentioning

confidence: 79%

Section: Theorem 31 Under Assumptions 1-5 It Holdsmentioning

confidence: 99%

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Estimation and Inference of Discontinuity in Density

Otsu

Matsushita

2013

Journal of Business & Economic Statistics

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“…However, as acreage increases beyond 1.75 acres, conventional farmers ship heavier truckloads than organic farmers, for the same farm size. This result suggests diminishing returns to farm scale for (Gregory & Veall, 1985;Wooldridge, 2010). The result suggests that local conventional farmers of fruits and vegetables may have increasing production advantages over organic growers as farm size increases.…”

Section: The Impact Of Scale: Modeling Truckload Deliveries To Marketmentioning

confidence: 99%

Locational Advantage and the Impact of Scale: Comparing Local and Conventional Fruit and Vegetable Transportation Efficiencies

Grigsby

Hellwinckel

2016

J. Agric. Food Syst. Community Dev.

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Some have suggested that in order for local foods to reach broader consumer segments and become price-competitive with foods sold in mainstream market channels, local farmers need to scale up their production and distribution operations to match the efficiencies of the conventional food system. In this study, we take a first step in evaluating how scaling up production and distribution could make locally produced foods more competitive with the conventional food system. We compare the transportation efficiencies of the conventional and local fruit and vegetable transportation networks in Knoxville, Tennessee, and determine the Knoxville-area food system's competitive transportation zones, defined as the region in which local farmers' shorter travel distances to market give them a locational advantage in transportation over their long distance, conventional food supply chain competitors. We analyze the extent to which local farmers' scales of production and distribution affect their transportation efficiencies, and we investigate factors that could improve their competitiveness with conventional distribution networks. We find that farms located within 25 miles (40 km) of the downtown market tended to deliver their produce to market at least as efficiently as conventionally distributed foods from California. More distant farms needed to scale up their production and distribution operations to remain within the competitive transportation zones. Investigating travel distance thresholds could provide policy-makers with useful information in planning land use and infrastructure investment projects for local food systems and in a *

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“…Gregory and Veall (1985) showed that the results of the Wald test can change dramatically under a monotonic transformation of the null hypothesis. The LR test, however, is invariant to such transformations.…”

Section: Wald Statistic For the Irfmentioning

confidence: 99%

One-Dimensional Inference in Autoregressive Models With the Potential Presence of a Unit Root

Mikusheva

2012

Econometrica

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Formulating Wald Tests of Nonlinear Restrictions

Cited by 190 publications

References 4 publications

Estimation and Inference of Discontinuity in Density

Estimation and Inference of Discontinuity in Density

Locational Advantage and the Impact of Scale: Comparing Local and Conventional Fruit and Vegetable Transportation Efficiencies

One-Dimensional Inference in Autoregressive Models With the Potential Presence of a Unit Root

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