TY - JOUR
T1 - A consistent nonparametric test of affiliation in auction models
AU - Jun, Sung Jae
AU - Pinkse, Joris
AU - Wan, Yuanyuan
N1 - Funding Information:
This paper is in part based on research supported by NSF grant SES-0922127 . We thank the Human Capital Foundation for their support of CAPCP. We thank Ken Hendricks, Luciano de Castro, Vijay Krishna, Yosef Rinott, the associate editor, and two anonymous referees for helpful comments.
PY - 2010/11
Y1 - 2010/11
N2 - We propose a new nonparametric test of affiliation, a strong form of positive dependence with independence as a special, knife-edge, case. The test is consistent against all departures from the null of affiliation, and its null distribution is standard normal. Like most nonparametric tests, a sample-size dependent input parameter is needed. We provide an informal procedure for choosing the input parameter and evaluate the test's performance using a simulation study. Our test can be used to test the fundamental assumptions of the auctions literature. We implement our test empirically using the Outer Continental Shelf (OCS) auction data.
AB - We propose a new nonparametric test of affiliation, a strong form of positive dependence with independence as a special, knife-edge, case. The test is consistent against all departures from the null of affiliation, and its null distribution is standard normal. Like most nonparametric tests, a sample-size dependent input parameter is needed. We provide an informal procedure for choosing the input parameter and evaluate the test's performance using a simulation study. Our test can be used to test the fundamental assumptions of the auctions literature. We implement our test empirically using the Outer Continental Shelf (OCS) auction data.
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U2 - 10.1016/j.jeconom.2010.04.006
DO - 10.1016/j.jeconom.2010.04.006
M3 - Article
AN - SCOPUS:84755161008
SN - 0304-4076
VL - 159
SP - 46
EP - 54
JO - Journal of Econometrics
JF - Journal of Econometrics
IS - 1
ER -