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Identification and estimation by penalization in nonparametric instrumental regression

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Author Info
FLORENS, Jean-Pierre
JOHANNES, Jan
VAN BELLEGEM, SŽbastien (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

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Abstract

The nonparametric estimation of a regression function x from conditional moment restrictions involving instrumental variables is considered. The rate of convergence of penalized estimators is studied in the case where x is not identified from the conditional moment restriction. We also study the gain of modifying the penalty in the estimation, considering for instance a Sobolev-type of penalty. We analyze the effect of this modification on the rate of convergence of the estimator and on the identification of the regression function x.

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File URL: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2007_85.pdf
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Publisher Info
Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2007085.

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Date of creation: 01 Oct 2007
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Handle: RePEc:cor:louvco:2007085

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Related research
Keywords: instrumental variable; nonparametric estimation; ill-posed inverse problem; identification; penalized estimator; Tikhonov regularization; Sobolev norm;

Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

Cited by:
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  1. Xiaohong Chen & Markus Reiss, 2007. "On Rate Optimality for Ill-posed Inverse Problems in Econometrics," Cowles Foundation Discussion Papers 1626, Cowles Foundation, Yale University. [Downloadable!]
  2. Xiaohong Chen & Demian Pouzo, 2008. "Estimation of nonparametric conditional moment models with possibly nonsmooth moments," CeMMAP working papers CWP12/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
  3. Xiaohong Chen & Demian Pouzo, 2008. "Estimation of Nonparametric Conditional Moment Models with Possibly Nonsmooth Moments," Cowles Foundation Discussion Papers 1650, Cowles Foundation, Yale University, revised Oct 2008. [Downloadable!]
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This page was last updated on 2009-11-19.


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