On testability of complementarity in models with multiple equilibria

Yoshiyasu Rai, Taisuke Otsu

Research output: Contribution to journalArticle

Abstract

This paper revisits testability of complementarity in economic models with multiple equilibria studied by Echenique and Komunjer (2009). We find that Echenique and Komunjer's (2009) testable implications on extreme quantiles can be implied by a weaker version of their tail condition without complementarity, and on the other hand, a slightly stronger version of complementarity implies their testable implications without the tail condition.

Original languageEnglish
Pages (from-to)79-82
Number of pages4
JournalEconomics Letters
Volume120
Issue number1
DOIs
Publication statusPublished - 2013 Jul 1
Externally publishedYes

Fingerprint

Multiple equilibria
Complementarity
Testability
Quantile

Keywords

  • Complementarity
  • Quantile
  • Testability

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

On testability of complementarity in models with multiple equilibria. / Rai, Yoshiyasu; Otsu, Taisuke.

In: Economics Letters, Vol. 120, No. 1, 01.07.2013, p. 79-82.

Research output: Contribution to journalArticle

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