Near identification of policy trade-offs using preference proxies to elicit hidden information in the linear case

Jean-Paul Azam ()

No 16-642, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: This paper shows that neither OLS nor 2SLS can generically identify policy trade offs in the linear case, except under extreme assumptions. Practitioners have to be content with near identification and the paper discusses how to choose between these two methods. It shows that a two-stage approach using preference proxies to elicit hidden information can potentially narrow the identification gap and that a simple specification test can be used to assess whether these proxies really contribute to improving identification.

Keywords: Policy trade offs; near identification; preference proxies (search for similar items in EconPapers)
Date: 2016-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tse-fr.eu/sites/default/files/TSE/docum ... /2016/preference.pdf Full text (application/pdf)

Related works:
Working Paper: Near Identification of Policy Trade-Offs Using Preference Proxies to Elicit Hidden Information in the Linear Case (2021)
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:tse:wpaper:30422

Access Statistics for this paper

More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by ().