Meenagh, David; Minford, Patrick; Xu, Yongdeng - 2022
informal test of the model. We call this procedure informal Indirect Inference, III. By contrast what we call Formal Indirect … Inference, FII, chooses a set of moments as the auxiliary model and computes the Wald statistic for the joint distribution of … follows that models estimated by III will typically also be rejected by formal indirect inference tests. …