Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5096861 | Journal of Econometrics | 2010 | 9 Pages |
Abstract
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.
Related Topics
Physical Sciences and Engineering
Mathematics
Statistics and Probability
Authors
Sung Jae Jun, Joris Pinkse, Yuanyuan Wan,