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Econometrica Vol. 55 No. 4 1987

Asymmetric Least Squares Estimation and Testing

Whitney K. Newey; James L. Powell

Abstract

This paper considers estimation and testing using location measures for regression m odels that are based on an asymmetric least-squares criterion functio n. These estimators have properties that are analogous to regression quantiles, but are easier to calculate, as are the corresponding test statistics. Asymmetric least-squares tests of homoskedasticity and s ymmetry compare quite favorably with other tests of these hypotheses in terms of asymptotic relative efficiency. Consequently, asymmetric least-squares estimation provides a convenient and relatively efficie nt method of characterizing the conditional distributi on of a dependent variable given some regressors.

DOI
10.2307/1911031
Volume
55
Issue
4
Pages
819
Sources
bibtex:phds-export.bib crossref openalex

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