ABSTRACT
In this chapter we discuss the optimality of empirical likelihood tests via their induced confidence regions. The optimality of parametric likelihood ratio tests is wellknown. Although not formally stated, it is more or less implied that the optimality of likelihood ratio tests also carries over to empirical likelihood ratio tests. However, there are many variations of the empirical likelihood approach in the literature. If we are not careful, some variations of empirical likelihood tests may not be optimal. The induced confidence regions can be drastically different.
