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Identification of hedonic equilibrium and nonseparable simultaneous equations

Victor Chernozhukov, Alfred Galichon, Marc Henry, Brendan Pass

arXiv 27 Sep 2017 · Econometrics · publishedJournal of Political Economy (2020) · 6 citations (OpenAlex)

arXiv:1709.09570 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper derives conditions under which preferences and technology are nonparametrically identified in hedonic equilibrium models, where products are differentiated along more than one dimension and agents are characterized by several dimensions of unobserved heterogeneity. With products differentiated along a quality index and agents characterized by scalar unobserved heterogeneity, single crossing conditions on preferences and technology provide identifying restrictions in Ekeland, Heckman and Nesheim (2004) and Heckman, Matzkin and Nesheim (2010). We develop similar shape restrictions in the multi-attribute case. These shape restrictions, which are based on optimal transport theory and generalized convexity, allow us to identify preferences for goods differentiated along multiple dimensions, from the observation of a single market. We thereby derive nonparametric identification results for nonseparable simultaneous equations and multi-attribute hedonic equilibrium models with (possibly) multiple dimensions of unobserved heterogeneity. One of our results is a proof of absolute continuity of the distribution of endogenously traded qualities, which is of independent interest.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1J. Heckman, R. Matzkin, and L. Nesheim (2010) Nonparametric identification and estimation of nonadditive hedonic models1.000144100%
2R. Matzkin (2003) Nonparametric estimation of nonadditive random functions1.00084100%
3I. Ekeland, J. Heckman, and L. Nesheim (2004) Identification and estimation of hedonic models1.00083100%
4P.-A. Chiappori, R. McCann, and L. Nesheim (2010) Hedonic price equilibria, stable matching, and optimal transport: equivalence, topology, and uniqueness0.9209578%
5X. Ma, N. Trudinger, and X. Wang (2005) Regularity of potential functions of the optimal transportation problem0.87452100%
6I. Ekeland (2010) Existence, uniqueness and efficiency of equilibrium in hedonic markets with multidimensional types0.8434375%
7C. Villani (2009) Optimal Transport0.73715540%
8V. Chernozhukov, A. Galichon, M. Henry, and B. Pass (2020) Regularity of equilibrium price and product distribution in hedonic models0.73715440%
9I. Ekeland, A. Galichon, and M. Henry (2012) Comonotone measures of multivariate risks0.73732100%
10A. Galichon and M. Henry (2012) Dual theory of choice under multivariate risks0.73732100%

Showing the top 10 of 61 scored citations.

Cited by, within the corpus

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1A condition for the identification of multivariate models with binary instruments with Corrigendum and Addendum0.64441
2An econometrician's guide to optimal transport0.58531
3An optimal transport approach to estimating causal effects via nonlinear difference-in-differences0.51121
4Local Identification in Instrumental Variable Multivariate Quantile Regression Models0.40511
5Identification in (Endogenously) Nonlinear SVARs Is Easier Than You Think0.40511