Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 2007, Volume 75, Issue 4

Approximate Generalizations and Computational Experiments

https://doi.org/10.1111/j.1468-0262.2007.00779.x
p. 967-992

Felix Kubler

In this paper I demonstrate how one can generalize finitely many examples to statements about (infinite) classes of economic models. If there exist upper bounds on the number of connected components of one‐dimensional linear subsets of the set of parameters for which a conjecture is true, one can conclude that it is correct for all parameter values in the class considered, except for a small residual set, once one has verified the conjecture for a predetermined finite set of points. I show how to apply this insight to computational experiments and spell out assumptions on the economic fundamentals that ensure that the necessary bounds on the number of connected components exist.


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