GMM and Indirect Inference - an appraisal of their connections and new results on their properties under second order identification

Prosper Dovonon, Alastair R. Hall

Research output: Preprint/Working paperWorking paper

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Abstract

This paper makes two contributions. First, we provide a review of the similarities and difference between Generalized Method of Moments and Indirect Inference, focusing particularly on issues of moment selection, identification failure and model misspecification. Secondly, we provide new results on the limiting behaviour of GMM and II estimators when first order identification fails but the parameters are second order identified.
Original languageEnglish
Place of PublicationManchester
Number of pages49
Publication statusPublished - Jan 2015

Publication series

NameEconomics discussion paper series
PublisherUniversity fo Manchester
No.EDP-1505

Keywords

  • Indirect Inference, generalized Method of Moments, simulation methods

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