EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/35524
  
Title:Imposing economic constraints in nonparametric regression: survey, implementation and extension PDF Logo
Authors:Henderson, Daniel J.
Parmeter, Christopher F.
Issue Date:2009
Series/Report no.:IZA discussion papers 4103
Abstract:Economic conditions such as convexity, homogeneity, homotheticity, and monotonicity are all important assumptions or consequences of assumptions of economic functionals to be estimated. Recent research has seen a renewed interest in imposing constraints in nonparametric regression. We survey the available methods in the literature, discuss the challenges that present themselves when empirically implementing these methods and extend an existing method to handle general nonlinear constraints. A heuristic discussion on the empirical implementation for methods that use sequential quadratic programming is provided for the reader and simulated and empirical evidence on the distinction between constrained and unconstrained nonparametric regression surfaces is covered.
Subjects:Constraint weighted bootstrapping
Hessian
concavity
identification
earnings function
JEL:J20
J30
C14
Persistent Identifier of the first edition:urn:nbn:de:101:1-2009041483
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
599051612.pdf346.68 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/35524

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.