Journal
JOURNAL OF ECONOMETRICS
Volume 193, Issue 1, Pages 113-122Publisher
ELSEVIER SCIENCE SA
DOI: 10.1016/j.jeconom.2016.01.007
Keywords
Nonseparable model; Triangular systems; Control variable; Instrument validity; Nonparametric identification
Ask authors/readers for more resources
This paper presents a test for the validity of control variable approaches to identification in triangular non separable models. Assumptions commonly imposed to justify such methods include full independence of instruments and disturbances and existence of a reduced form that is strictly monotonic in a scalar disturbance. We show that if the data has a particular structure, namely that the distribution of the endogenous variable has a mass point at the lower (or upper) boundary of its support, validity of the control variable approach implies a continuity condition on an identified function, which can be tested empirically. (C) 2016 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available