27 February 2025 0 4K Report

The Method of Moments Quantile Regression (MM-QR), as introduced by Machado and Santos Silva (2019), has recently gained prominence in macroeconomic research. However, concerns have been raised by numerous econometricians regarding the proper application of this technique. In the context of employing MM-QR, what critical assumptions warrant consideration? What strategies can be implemented to ensure these assumptions are not violated? And what recommendations can be offered to facilitate the effective utilization of this estimator?

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