Testing for the monotone likelihood ratio assumption

被引:10
作者
Roosen, J [1 ]
Hennessy, DA
机构
[1] Univ Kiel, Dept Food Econ & Consumpt Studies, D-24098 Kiel, Germany
[2] Iowa State Univ, Dept Econ, Ames, IA 50011 USA
关键词
affiliation; auction; likelihood ratio; order-restricted inference; Stochastic order;
D O I
10.1198/073500104000000235
中图分类号
F [经济];
学科分类号
02 ;
摘要
Although monotonicity of the likelihood ratio for conditioned densities is a common technical assumption in economic models, empirical tests for its plausibility do not appear to have been conducted. This article develops such a test based on the theory of order-restricted inference that is robust with respect to the correlation structure of the distributions being compared. The test is applied to study the technology revealed by agricultural production experiments. For the data under scrutiny, the results support the monotone likelihood ratio assumption. In a second application, we find some support for the assumption of affiliation among bids cast in a multiple-round Vickrey auction for a consumption good.
引用
收藏
页码:358 / 366
页数:9
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