Foundations and Trends® in Econometrics

Volume 7, issue 2

Choosing the More Likely Hypothesis

Much of economists' statistical work centers on testing hypotheses in which parameter values are partitioned between a null hypothesis and an alternative hypothesis in order to distinguish two views about the world. Our traditional procedures are based on the probabilities of a test statistic under
Volume 7, issue 1

The Composite Marginal Likelihood (CML) Inference Approach with Applications to Discrete and Mixed Dependent Variable Models

This monograph presents the basics of the composite marginal likelihood (CML) inference approach, discussing the asymptotic properties of the CML estimator and the advantages and limitations of the approach. The composite marginal likelihood (CML) inference approach is a relatively simple approach t...