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On Testability Of Complementarity In Models With Multiple Equilibria

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  • Taisuke Otsu
  • Yoshiyasu Rai

Abstract

This paper revisits testability of complementarity in economic models with multiple equilibria studied by Echenique and Komunjer (2009). We find that Echenique and Komunjer's (2009) testable implications on extreme quantiles can be implied by a weaker version of their tail condition without complementarity, and on the other hand, a slightly stronger version of complementarity implies their testable implications without the tail condition.

Suggested Citation

  • Taisuke Otsu & Yoshiyasu Rai, 2013. "On Testability Of Complementarity In Models With Multiple Equilibria," STICERD - Econometrics Paper Series 560, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stiecm:560
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    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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