Restrictions of economic theory in nonparametric methods
In: Handbook of Econometrics
This chapter describes several nonparametric estimation and testing methods for econometric models. Instead of using parametric assumptions on the functions and distributions in an economic model, the methods use the restrictions that can be derived from the model. Examples of such restrictions are the concavity and monotonicity of functions, equality conditions, and exclusion restrictions.The chapter shows, first, how economic restrictions can guarantee the identification of nonparametric functions in several structural models. It then describes how shape restrictions can be used to estimate nonparametric functions using popular methods for nonparametric estimation. Finally, the chapter describes how to test nonparametrically the hypothesis that an economic model is correct and the hypothesis that a nonparametric function satisfies some specified shape properties.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|This chapter was published in: ||This item is provided by Elsevier in its series Handbook of Econometrics with number
4-42.||Handle:|| RePEc:eee:ecochp:4-42||Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description|
When requesting a correction, please mention this item's handle: RePEc:eee:ecochp:4-42. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.