A1954
Title: Testing the solvability of systems of linear inequalities
Authors: Leonard Goff - University of Calgary (Canada)
Eric Mbakop - OSU (United States) [presenting]
Abstract: The focus is on the problem of testing whether a system of linear equality and inequality constraints admits a solution when the coefficients must be estimated. A wide range of inferential questions in partially identified models can be formulated as hypotheses of this form. The approach exploits an alternative characterization of the hypothesis based on whether the value of a certain linear program equals zero. Building on this characterization, bootstrap-based testing procedures are developed and their uniform validity is established over large classes of data-generating processes. Simulation results demonstrate good finite-sample performance, even for moderate sample sizes. Two empirical applications illustrate the usefulness of the approach.
