Juanjuan Fan | Searcharxiv

arXiv2025

A New Solution for Cooperative Game with Public Externalities

This study proposes a novel solution concept--the w-value--for cooperative games with public externalities. The w-value is axiomatically founded on three principles: Pareto Optimality (PO), Market Equilibrium (ME), and Fiscal Balance (FB), which together ensure a fair and economically sound distribution of gains. We establish its existence, uniqueness, and an accompanying implementation mechanism. A key theoretical advantage is its strong stability: the w-value lies within the core, specifically the γ-core making it resistant to coalitional deviations. Moreover, its computational efficiency facilitates practical application to complex real-world problems, offering a clear advantage over more cumbersome alternatives. These properties make the w-value a superior framework for analyzing cooperation under public externalities. A numerical illustration demonstrates the step-by-step calculation process. Finally, we apply the concept to international climate negotiations, showing how it provides a theoretical rationale for the shift from rigid mandatory emission reduction systems toward the flexible structure of Nationally Determined Contributions.

econ.TH↗

arXiv2016

Sparse Estimation of Generalized Linear Models (GLM) via Approximated Information Criteria

We propose a new sparse estimation method, termed MIC (Minimum approximated Information Criterion), for generalized linear models (GLM) in fixed dimensions. What is essentially involved in MIC is the approximation of the $\ell_0$-norm with a continuous unit dent function. Besides, a reparameterization step is devised to enforce sparsity in parameter estimates while maintaining the smoothness of the objective function. MIC yields superior performance in sparse estimation by optimizing the approximated information criterion without reducing the search space and is computationally advantageous since no selection of tuning parameters is required. Moreover, the reparameterization tactic leads to valid significance testing results that are free of post-selection inference. We explore the asymptotic properties of MIC and illustrate its usage with both simulated experiments and empirical examples.

stat.ME↗