Semiparametric models revolutionize economics with added flexibility and faster estimators.
Semiparametric models offer more flexibility than fully parametric models in economics. They combine finite and infinite components, allowing for better estimation of data. Semiparametric regression models are especially popular. Two-step semiparametric estimators are commonly used and have reliable convergence rates. Researchers have also explored sieve-based estimators and semiparametric efficiency in this field.