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Informational Content of Factor Structures in Simultaneous Binary Response Models

Shakeeb Khan, Arnaud Maurel, Yichong Zhang

arXiv 3 Oct 2019 · Econometrics · 1 citations (OpenAlex)

arXiv:1910.01318 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study the informational content of factor structures in discrete triangular systems. Factor structures have been employed in a variety of settings in cross sectional and panel data models, and in this paper we formally quantify their identifying power in a bivariate system often employed in the treatment effects literature. Our main findings are that imposing a factor structure yields point identification of parameters of interest, such as the coefficient associated with the endogenous regressor in the outcome equation, under weaker assumptions than usually required in these models. In particular, we show that a "non-standard" exclusion restriction that requires an explanatory variable in the outcome equation to be excluded from the treatment equation is no longer necessary for identification, even in cases where all of the regressors from the outcome equation are discrete. We also establish identification of the coefficient of the endogenous regressor in models with more general factor structures, in situations where one has access to at least two continuous measurements of the common factor.

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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
1Vuong and Xu (2017) Counterfactual mapping and individual treatment effects in nonseparable models with binary endogeneity0.874112100%
2Han and Vytlacil (2017) Identification in a generalization of bivariate probit models with endogenous regressors0.87492100%
3Cunha, Heckman, and Schennach (2010) Estimating the Technology of Cognitive and Noncognitive Skill Formation0.87452100%
4Carneiro, Hansen, and Heckman (2003) Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of…0.84333100%
5Vytlacil and Yildiz (2007) Dummy Endogenous Variables in Weakly Separable Models0.74931642%
6Hu and Schennach (2013) Nonparametric identification and semiparametric estimation of classical measurement error models without side information0.7374275%
7Ashworth, Hotz, Maurel, and Ransom (2021) Changes Across Cohorts in Wage Returns to Schooling and Early Work Experiences0.73732100%
8Khan and Nekipelov (2018) Information structure and statistical information in discrete response models0.73732100%
9Shaikh and Vytlacil (2011) Partial Identification in Triangular Systems of Equations with Binary Dependent Variables0.73732100%
10Abrevaya, Hausman, and Khan (2010) Testing for Causal Effects in a Generalized Regression Model with Endogenous Regressors self0.6443267%

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

Citing paperIntensityMentionsSections
1Inference on High Dimensional Selective Labeling Models0.73732
2Partial Identification in Nonseparable Binary Response Models with Endogenous Regressors We are grateful to James Heckman, Marc Henry, Roger Koenker, and to seminar audiences at Columbia University and Michigan State University for helpful feedback. We also thank Martin Weidner and the organizers of the Chamberlain Seminar, and are grateful to Florian Gunsilius, Sukjin Han, Wayne Gao, and Takuya Ura for their questions and feedback, and to Adam Rosen for his thoughtful discussion. Jiaying Gu acknowledges financial support from the Social Sciences and Humanities Research Council of Canada. All errors are our own0.40511