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Author: Frandsen, Brigham R.
Resulting in 1 citation.
1. Frandsen, Brigham R.
Testing Censoring Point Independence
Journal of Business and Economic Statistics 37,3 (2019): 496-505.
Cohort(s): NLSY79
Publisher: American Statistical Association
Keyword(s): Panel Study of Income Dynamics (PSID); Statistical Analysis; Survey of Income and Program Participation (SIPP); Unemployment Duration

Identification in censored regression analysis and hazard models of duration outcomes relies on the condition that censoring points are conditionally independent of latent outcomes, an assumption which may be questionable in many settings. This article proposes a test for this assumption based on a Cramer-von Mises-like test statistic comparing two different nonparametric estimators for the latent outcome cdf: the Kaplan-Meier estimator, and the empirical cdf conditional on the censoring point exceeding (for right-censored data) the cdf evaluation point. The test is consistent and has power against a wide variety of alternatives. Applying the test to unemployment duration data from the NLSY, the SIPP, and the PSID suggests the assumption is frequently suspect.
Bibliography Citation
Frandsen, Brigham R. "Testing Censoring Point Independence." Journal of Business and Economic Statistics 37,3 (2019): 496-505.