Testing assumptions and counterfactuals
The following are materials related to my research on testing assumptions in statistical models.
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Evaluating the Consequences of Assumptions Using Simulations
The Political Methodologist, 11(1):21--25
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While prominent in some aspects of statistical analysis, simulations
are infrequently used to evaluate the quality of specific empirical
statistical results. Since few researchers would argue that they have
a perfectly specified model, how much we believe a particular set of
results depends on the degree to which assumptions of the statistical
model are believed to be violated and the robustness of the model to
those violations. Although assumptions will in general be
unverifiable, the value of a particular empirical analysis can be made
clearer by characterizing how inference would change if the
assumptions did not hold. Two useful criteria for evaluating the
sensitivity of models can be provided using simulations. First, the
degree of assumption violation necessary to change our beliefs about
competing theories, such as causing the false rejection of a
hypothesis. Second, at what point would it no longer be possible to
recover the results originally found using the actual data.
Replication code and data
Included is an implementation of a Metropolis-Hastings algorithm to
simulate stochastic components conditional on a fitted parametric
model. The application is an instrumental variable model that
estimates the relationship between campaign contributions and election
outcomes. The code is written in R
homepage: http://wand.stanford.edu
email: wand(at)stanford.edu