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Iterative Estimation of Nonparametric Regressions with Continuous Endogenous Variables and Discrete Instruments

Samuele Centorrino, Frédérique Fève, Jean-Pierre Florens

arXiv 19 May 2019 · Econometrics · publishedJournal of Econometrics (2025)

arXiv:1905.07812 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We consider a nonparametric regression model with continuous endogenous independent variables when only discrete instruments are available that are independent of the error term. Although this framework is very relevant for applied research, its implementation is challenging, as the regression function becomes the solution to a nonlinear integral equation. We propose a simple iterative procedure to estimate such models and showcase some of its asymptotic properties. In a simulation experiment, we detail its implementation in the case when the instrumental variable is binary. We conclude with an empirical application to returns to education.

Citation extraction

49
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appendix boundary found by appendix_titled_section at “Appendix” · 57% of the source is main text. Read the extracted text to check this.

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
1Dunker, Florens, Hohage, Johannes \ Mammen (2014) `Iterative estimation of solutions to noisy nonlinear operator equations in nonparametric instrumental regression', Journal of E…1.00084100%
2Dunker (2021) `Adaptive estimation for some nonparametric instrumental variable models with full independence', Electronic Journal of Statisti…0.97112492%
3Florens, Racine \ Centorrino (2018) `Nonparametric Instrumental Variable Derivative Estimation', Jounal of Nonparametric Statistics 30(2), 368–3910.9285380%
4Card (1995) Earnings, Schooling, and Ability Revisited, in S. Polachek, ed., `Research in Labor Economics', Vol. 14, Greenwich Connecticut:…0.87462100%
5Darolles, Fan, Florens \ Renault (2011) `Nonparametric Instrumental Regression', Econometrica 79(5), 1541–15650.8434375%
6Li \ Racine (2008) `Nonparametric Estimation of Conditional CDF and Quantile Functions with Mixed Categorical and Continuous Data', Journal of Busi…0.8434375%
7Chen, Chernozhukov, Lee \ Newey (2014) `Local Identification of Nonparametric and Semiparametric Models', Econometrica 82(2), 785–8090.8307286%
8Carrasco, Florens \ Renault (2007) Linear inverse problems in structural econometrics estimation based on spectral decomposition and regularization, in J. Heckman…0.81142100%
9Kaltenbacher, Neubauer \ Scherzer (2008) Iterative Regularization Methods for Nonlinear Ill-Posed Problems, De Gruyter, Berlin, Boston0.7948450%
10Babii \ Florens (2017) `Is Completeness Necessary? Estimation in Non-identified Linear Models', Mimeo -UNC Chapel Hill0.64422100%

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arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
12607.056990.73732
2Local Identification in Instrumental Variable Multivariate Quantile Regression Models0.40511