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Combinatorial Bootstrap Inference IN in Prtially Identified Incomplete Structural Models

Author

Listed:
  • Marc Henry

    (Department of Economics, Université de Montréal)

  • Romuald Méango

    (Department of Economics, Université de Montréal)

  • Maurice Queyranne

    (Sauder School of Business)

Abstract

We propose a computationally feasible inference method infinite games of complete information. Galichon and Henry (2011) and Beresteanu, Molchanov, and Molinari (2011) show that such models are equivalent to a collection of moment inequalities that increases exponentially with the number of discrete outcomes. We propose an equivalent characterization based on classical combinatorial optimization methods that alleviates this computational burden and allows the construction of confidence regions with an effcient combinatorial bootstrap procedure that runs in linear computing time. The method can also be applied to the empirical analysis of cooperative and noncooperative games, instrumental variable models of discrete choice and revealed preference analysis. We propose an application to the determinants of long term elderly care choices.

Suggested Citation

  • Marc Henry & Romuald Méango & Maurice Queyranne, 2012. "Combinatorial Bootstrap Inference IN in Prtially Identified Incomplete Structural Models," CIRJE F-Series CIRJE-F-837, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2012cf837
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    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2012/2012cf837.pdf
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    References listed on IDEAS

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    Cited by:

    1. Lukáš Lafférs, 2019. "Identification in Models with Discrete Variables," Computational Economics, Springer;Society for Computational Economics, vol. 53(2), pages 657-696, February.
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    3. Magnac, Thierry, 2013. "Identification partielle : méthodes et conséquences pour les applications empiriques," L'Actualité Economique, Société Canadienne de Science Economique, vol. 89(4), pages 233-258, Décembre.

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