Abstract: "Moment Inequalities and Their Application"
This paper provides conditions under which the inequality constraints generated by either single agent optimizing behavior, or by the Nash equilibria of multiple agent problems, can be used as a basis for estimation and inference. We then add to the econometric literature on inference on the parameters of models defined by inequality constraints by providing a new, easy to use, specification test and method of constructing confidence intervals. The paper concludes with two applications which illustrate how the use of inequality constraints simplify the problem of obtaining estimators from complex behavioral models.