Identification of a Triangular Two Equation System Without Instruments
Arthur Lewbel,
Susanne Schennach and
Linqi Zhang
Journal of Business & Economic Statistics, 2024, vol. 42, issue 1, 14-25
Abstract:
We show that a standard linear triangular two equation system can be point identified, without the use of instruments or any other side information. We find that the only case where the model is not point identified is when a latent variable that causes endogeneity is normally distributed. In this nonidentified case, we derive the sharp identified set. We apply our results to Acemoglu and Johnson’s model of life expectancy and GDP, obtaining point identification and comparable estimates to theirs, without using their (or any other) instrument.
Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://hdl.handle.net/10.1080/07350015.2023.2166052 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Identification of a Triangular Two Equation System Without Instruments (2022) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:jnlbes:v:42:y:2024:i:1:p:14-25
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/UBES20
DOI: 10.1080/07350015.2023.2166052
Access Statistics for this article
Journal of Business & Economic Statistics is currently edited by Eric Sampson, Rong Chen and Shakeeb Khan
More articles in Journal of Business & Economic Statistics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().