A note on the identification in two equations probit model with dummy endogenous regressor

Romuald Méango and Ismael Mourifié (ismael.mourifie@utoronto.ca)

Working Papers from University of Toronto, Department of Economics

Abstract: This paper deals with the question whether exclusion restrictions on the exogenous regressors are necessary to identify two equation probit models with endogenous dummy regressor. Contradictory opinions have been exposed in the literature on the necessity of an exclusion restriction. Wilde (2000) argued that an exclusion restriction is not necessary, and proposed a simple criterion for identi fication in this model. We contradict his result, and show how the inherent incompleteness of the model leads to failure of (point) identi cation. We provide an exact identification proof when an exclusion restriction is available.

Keywords: Probit model; Endogenous dummy regressor; Partial identification (search for similar items in EconPapers)
JEL-codes: C35 (search for similar items in EconPapers)
Pages: Unknown pages
Date: 2013-10-14
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (2)

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Journal Article: A note on the identification in two equations probit model with dummy endogenous regressor (2014)
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