Control variables, discrete instruments, and identification of structural functions

Whitney Newey and Sami Stouli

Journal of Econometrics, 2021, vol. 222, issue 1, 73-88

Abstract: Control variables provide an important means of controlling for endogeneity in econometric models with nonseparable and/or multidimensional heterogeneity. We allow for discrete instruments, giving identification results under a variety of restrictions on the way the endogenous variable and the control variables affect the outcome. We consider many structural objects of interest, such as average or quantile treatment effects. We illustrate our results with an empirical application to Engel curve estimation.

Keywords: Control variables; Discrete instruments; Structural functions; Endogeneity; Partially nonparametric; Nonseparable models; Identification; Treatment effects (search for similar items in EconPapers)
JEL-codes: C14 C31 C35 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Control Variables, Discrete Instruments, and Identification of Structural Functions (2019)
Working Paper: Control Variables, Discrete Instruments, and Identification of Structural Functions (2018)
Working Paper: Control variables, discrete instruments, and identification of structural functions (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:222:y:2021:i:1:p:73-88

DOI: 10.1016/j.jeconom.2020.07.027

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