Tighter bounds in triangular systems

Sung Jae Jun, Joris Pinkse and Haiqing Xu ()

Journal of Econometrics, 2011, vol. 161, issue 2, 122-128

Abstract: We study a nonparametric triangular system with (potentially discrete) endogenous regressors and nonseparable errors. Like in other work in this area, the parameter of interest is the structural function evaluated at particular values. We impose a global exclusion and exogeneity condition, in contrast to Chesher (2005), but develop a rank condition which is weaker than Chesher's. The alternative rank condition can be satisfied for binary endogenous regressors, and it often leads to an identified interval tighter than Chesher (2005)'s minimum length interval. We illustrate the potential of the new rank condition using the Angrist and Krueger (1991) data.

Keywords: Nonparametric; triangular; systems; Control; variables; Weak; monotonicity; Partial; identification; Instrumental; variables; Rank; conditions (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:161:y:2011:i:2:p:122-128

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