Efficient Smooth GMM and Dimension Reduction

نویسندگان

  • Pascal Lavergne
  • Valentin Patilea
چکیده

We propose a new GMM criterion for models defined by conditional moment restrictions based on local averaging. It resembles a statistic based on smoothing techniques used in specification testing. Depending on whether the smoothing parameter is fixed or decreases to zero with the sample size, our approach defines a whole class of estimators. We show that consistency and asymptotic normality follows in both cases. However we show that at a first-order, letting the smoothing parameter tend to zero yields a semiparametric efficient estimator, and we provide a two-step efficient version. We also investigate a dimension-reduction device in the context of smooth GMM. While the resulting estimator does not attain the semiparametric efficiency bound, its higher-order properties may be preferable.

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تاریخ انتشار 2007