Moment Conditions Selection Based on Adaptive Penalized Empirical Likelihood

Table 4

EL and GMM shrinkage estimation of the labor supply equation¹.

Method	IV	EL^3	EL^3	SEL^4	SEL^4	P-EL^5	P-EL^5
		(1)	(2)	(3)	(4)	(5)	(6)
Adaptive-EL	𝑎	−0.0157	−0.0226	−0.0117	−0.0226	−0.0165	−0.0187
		(0.0253)	(0.0238)	(0.0052)	(0.0196)	(0.0195)	(0.0191)
	𝛿0	0.3243	0.2685	0.0697	0.1832	0.1395	0.1726
		(1.227)	(1.145)	(0.1469)	(0.1923)	(0.1455)	(0.1397)
	𝑑𝑡?^2	No	Yes	No	Yes	No	Yes
Adaptive-GMM	𝑎	−0.0157	−0.0223	−0.0116	−0.0228	−0.0165	−0.0192
		(0.025)	(0.0238)	(0.0049)	(0.0199)	(0.0196)	(0.0191)
	𝛿0	0.3240	0.2679	0.0697	0.1827	0.1398	0.1721
		(1.223)	(1.141)	(0.1469)	(0.1918)	(0.1455)	(0.1393)
	𝑑𝑡?^2	No	Yes	No	Yes	No	Yes

For detailed instructions see Remark 4.