Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217150 
Year of Publication: 
2019
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 10 [Issue:] 2 [Publisher:] The Econometric Society [Place:] New Haven, CT [Year:] 2019 [Pages:] 527-563
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
In this paper, I study identification of a nonseparable model with endogeneity arising due to unobserved heterogeneity. Identification relies on the availability of binary proxies that can be used to control for the unobserved heterogeneity. I show that the model is identified in the limit as the number of proxies increases. The argument does not require an instrumental variable that is excluded from the outcome equation nor does it require the support of the unobserved heterogeneity to be finite. I then propose a nonparametric estimator that is consistent as the number of proxies increases with the sample size. I also show that, for a fixed number of proxies, nontrivial bounds on objects of interest can be obtained. Finally, I study two real data applications that illustrate computation of the bounds and estimation with a large number of items.
Subjects: 
Nonseparable model
unobserved heterogeneity
latent variable
binary
measurement error
JEL: 
C14
C35
C38
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.