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Identification in Models with Discrete Variables

Lukas Laffers

No 1/2013, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: This paper provides a new simple and computationally tractable method for determining an identified set that can account for a broad set of economic models when economic variables are discrete. Using this method it is shown on a simple example how can imperfect instruments affect the size of the identified set when strict exogeneity is relaxed. It could be of great interest to know to what extent are the results driven by the exogeneity assumption which is often a subject of controversy. Moreover, flexibility gained from the new proposed method suggests that the determination of the identified set need not be application-specific anymore. This paper presents a unifying framework that approaches identification in an algorithmic way.

Keywords: Identification; Models; Discrete Variables. (search for similar items in EconPapers)
JEL-codes: C10 C21 C26 C61 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2013-01-08
New Economics Papers: this item is included in nep-dcm and nep-ecm
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Citations: View citations in EconPapers (2)

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