This paper investigates the learnability of the equilibrium under adaptive learning with heterogeneous and misspecified models. Agents have imperfect and mutually different information sets of economic variables, so they form heterogeneous expectations under learning rules that are differently underparameterized. Under heterogeneous learning, the economy converges to a type of restricted percep...

This paper demonstrates that a misspecified model of information processing interferes with long-run learning and allows inefficient choices to persist in the face of contradictory public information. I consider an observational learning environment where agents observe a private signal about a hidden state, and some agents observe the actions of their predecessors. Prior actions aggregate mult...

We consider a set of potentially misspecified structural models, geometrically combine their likelihood functions, and estimate the parameters using composite methods. In Monte Carlo study, estimators dominate likelihood?based in mean squared error models are superior to individual Kullback–Leibler sense. describe Bayesian quasi?posterior computations compare our approach model averaging, finit...

BACKGROUND Interaction in clinical trials presents challenges for design and appropriate sample size estimation. Here we considered interaction between treatment assignment and a dichotomous prognostic factor with a continuous outcome. Our objectives were to describe differences in power and sample size requirements across alternative distributions of a prognostic factor and magnitudes of the i...

In this paper we are interested in empirical likelihood (EL) as a method of estimation, and we address the following two problems: (1) selecting among various empirical discrepancies in an EL framework and (2) demonstrating that EL has a well-defined probabilistic interpretation that would justify its use in a Bayesian context. Using the large deviations approach, a Bayesian law of large number...

Decompositions make it possible to investigate whether gaps between groups in certain outcomes would remain if had comparable characteristics. In practice, however, such a counterfactual comparability is difficult establish the presence of lacking common support, functional-form misspecification, and insufficient sample size. this article, authors show how decompositions can be undermined by th...