Econometrica Vol. 66 No. 3 1998
Instrumental Models and Indirect Encompassing
open access
Abstract
We introduce nonnested hypotheses tests using indirect, simulation-based estimation procedures. We propose different test statistics and carefully examine the corresponding implicit mi hypotheses. A notion of indirect encompassing comes up naturally, which may be compared to the usual encompassing conditions. Then we show how these methods extend standard specification and overidentification tests.
- DOI
- 10.2307/2998579
- Volume
- 66
- Issue
- 3
- Pages
- 673
- Sources
- bibtex:phds-export.bib openalex crossref