IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Consistent and Asymptotically Unbiased MinP Tests of Multiple Inequality Moment Restrictions

  • Christopher J. Bennett


    (Department of Economics, Vanderbilt University)

Registered author(s):

    This paper considers the general problem of testing multiple inequality moment restrictions against an unrestricted alternative. We first introduce a test based on a maximum statistic and show how, via a partially recentered bootstrap scheme, we may obtain a testing procedure that delivers, at least asymptotically, an exact alpha-level test for any configuration of the parameters on the boundary of the null hypothesis. We prove that this bootstrap test is asymptotically unbiased and that it weakly dominates analogous testing procedures based on the canonical (fully centered) bootstrap. Building on these results we introduce a computationally inexpensive minimum p-value test. The minimum p-value test enjoys the asymptotic unbiasedness property of the underlying partially recentered bootstrap test. Additionally, the minimum $p$-value test delivers balance of power among the individual moment inequalities under test without studentization, and also allows users to gauge the strength of the evidence against the individual moment inequalities. To illustrate the use of our proposed testing procedure we examine the distributional effects of Vietnam veteran status on earnings. In particular, the results from our procedure when applied to testing for stochastic dominance and normalized stochastic dominance demonstrate that there is unambiguously greater poverty and greater relative inequality in earnings for veterans.

    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.

    File URL:
    File Function: First version, 2009
    Download Restriction: no

    Paper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 0908.

    in new window

    Date of creation: Jul 2009
    Date of revision:
    Handle: RePEc:van:wpaper:0908
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:van:wpaper:0908. 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: (John P. Conley)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.