Figure A.1:
A diagram of a line graph shows GMM rank Tests, T equals 200 and N equals 1, comparing probability of finding significant factor correlation versus population factor correlation.
Description: This figure complements Figure 1. T is increased to 200 years in the simulation.
Interpretation: The GMM-rank test has no power to detect “useful” factors even in large samples. The corrected version and testing directly the factor correlation become more powerful tests when T is large.

The Power of GMM-Rank Tests:T = 200.

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