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Unordered Monotonicity

James Heckman and Rodrigo Pinto

No 23497, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper defines and analyzes a new monotonicity condition for the identification of counterfactuals and treatment effects in unordered discrete choice models with multiple treatments, heterogenous agents and discrete-valued instruments. Unordered monotonicity implies and is implied by additive separability of choice of treatment equations in terms of observed and unobserved variables. These results follow from properties of binary matrices developed in this paper. We investigate conditions under which unordered monotonicity arises as a consequence of choice behavior. We characterize IV estimators of counterfactuals as solutions to discrete mixture problems.

JEL-codes: C16 C93 I21 J15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm
Date: 2017-06
Note: ED TWP
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Published as James J. Heckman & Rodrigo Pinto, 2018. "Unordered Monotonicity," Econometrica, Econometric Society, vol. 86(1), pages 1-35, January.

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