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Abstract:

Econometrics Paper
ON TESTABILITY OF COMPLEMENTARITY IN MODELS WITH MULTIPLE EQUILIBRIA
Taisuke Otsu and Yoshiyasu Rai
February 2013
Paper No' EM/2013/560:
Full Paper (pdf)

JEL Classification: C10


Tags: complementarity; testability; quantile.

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.