Please wait a minute...

Frontiers of Economics in China

Front. Econ. China    2016, Vol. 11 Issue (3) : 468-497
Orginal Article
Redundancy of Moment Conditions in Restricted GMM Estimation
Hailong Qian()
Department of Economics, John Cook School of Business, Saint Louis University, St. Louis, MO 63108, USA
Download: PDF(367 KB)  
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks

Using a novel approach to calculating the rank of the difference of two asymptotic variance matrices, The author derives the necessary and sufficient conditions for an extra set of moment conditions to be redundant given a set of moment conditions in GMM estimation with general nonlinear restrictions. The necessary and sufficient conditions derived in this paper include as a special case the redundancy of moment conditions for GMM estimation without restrictions that was first derived by Breusch et al. (1999). Therefore this paper advances the research on redundancy of moment conditions from unrestricted GMM estimation to a larger class of GMM estimation. To show their usefulness, the main results of the current paper are applied to instrumental variables estimation of linear regression models and the efficient estimation of seemingly unrelated regressions models, subject to restrictions.

Keywords GMM      restricted GMM estimation      moment conditions      redundancy of moment conditions      efficiency     
Issue Date: 23 September 2016
 Cite this article:   
Hailong Qian. Redundancy of Moment Conditions in Restricted GMM Estimation[J]. Front. Econ. China, 2016, 11(3): 468-497.
E-mail this article
E-mail Alert
Articles by authors
Hailong Qian
Related articles from Frontiers Journals
[1] Yi Che, Zuojun Fan, Yan Zhang. The Effect of Land Reallocation on Off-Farm Employments in Rural China[J]. Front. Econ. China, 2019, 14(3): 401-427.
[2] Haiwen Zhou. Coordination Costs, Market Size, and the Choice of Technology[J]. Front. Econ. China, 2019, 14(1): 131-148.
[3] Guoqiang Tian. Deceleration of China’s Economic Growth: Causes and Countermeasures[J]. Front. Econ. China, 2019, 14(1): 3-25.
[4] Henry Y. Wan Jr.. Involuntary Unemployment: An Expository Note[J]. Front. Econ. China, 2018, 13(1): 83-92.
[5] Ying Chu Ng, Suthathip Yaisawarng. Can a Government Initiate Enterprise Reform to Improve Efficiency? A Cross-Section Analysis of the Chinese Pharmaceutical Industry[J]. Front. Econ. China, 2017, 12(4): 607-634.
[6] Ming Lei,Zihan Yin. An Analysis of Energy and Environment Efficiency of China’s Iron and Steel Industry[J]. Front. Econ. China, 2016, 11(1): 123-141.
[7] Qi Sun,Tiao Li,Fang Wu. Enforcement of Capacity-Differentiated Regulations in China: Evidence from Coal-Fired Power Plants[J]. Front. Econ. China, 2015, 10(4): 604-628.
[8] Xi Weng. Learning and Efficiency with Search Frictions[J]. Front. Econ. China, 2015, 10(3): 449-466.
[9] Haiwen Zhou. The Choice of Technology and Equilibrium Wage Rigidity[J]. Front. Econ. China, 2015, 10(2): 252-271.
[10] Ivashchenko Sergey. Estimating Nonlinear DSGE Models with Moments Based Methods[J]. Front. Econ. China, 2015, 10(1): 38-55.
[11] Wenjun Liu, Shuliang Zou. Does Openness Increase the Efficiency of China’s Manufacturing Firms? Evidence from the World Bank Investment Climate Survey[J]. Front Econ Chin, 2013, 8(3): 430-451.
[12] Hui He, Hao Zhang. A Rapid Grid Search Method for Solving Dynamic Programming Problems in Economics[J]. Front Econ Chin, 2013, 8(2): 260-271.
[13] Kevin X. D. Huang, Chun Jiang, Qingyuan Li,, Kai Sheng, Jia Wang, Qiwei Zhao. Financial Development, Foreign Direct Investment, and the Efficiency of Capital Allocation in China[J]. Front Econ Chin, 2013, 8(2): 165-185.
[14] Yingxin Wu, Xianbo Zhou. Technical Efficiency in the Chinese Textile Industry[J]. Front Econ Chin, 2013, 8(1): 146-163.
[15] Jun Chen, Zhiqi Chen. The Quiet Life of a Monopolist: The Efficiency Losses of Monopoly Reconsidered[J]. Front Econ Chin, 2011, 6(3): 389-412.
Full text