Testing for the Monotone Likelihood Ratio Assumption
开发了一种基于有序约束推断的检验方法，用于验证经济模型中常见的单调似然比假设，并将其应用于农业生产实验和维克里拍卖数据，结果支持该假设。
Although monotonicity of the likelihood ratio for conditioned densities is a common technical assumption in economic models, empirical tests for its plausibility do not appear to have been conducted. This article develops such a test based on the theory of order-restricted inference that is robust with respect to the correlation structure of the distributions being compared. The test is applied to study the technology revealed by agricultural production experiments. For the data under scrutiny, the results support the monotone likelihood ratio assumption. In a second application, we find some support for the assumption of affiliation among bids cast in a multiple-round Vickrey auction for a consumption good.