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Identification and Estimation of Weakly Separable Models Without Monotonicity

Songnian Chen, Shakeeb Khan, Xun Tang

arXiv 9 Mar 2020 · Econometrics · 2 citations (OpenAlex)

arXiv:2003.04337 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study the identification and estimation of treatment effect parameters in weakly separable models. In their seminal work, Vytlacil and Yildiz (2007) showed how to identify and estimate the average treatment effect of a dummy endogenous variable when the outcome is weakly separable in a single index. Their identification result builds on a monotonicity condition with respect to this single index. In comparison, we consider similar weakly separable models with multiple indices, and relax the monotonicity condition for identification. Unlike Vytlacil and Yildiz (2007), we exploit the full information in the distribution of the outcome variable, instead of just its mean. Indeed, when the outcome distribution function is more informative than the mean, our method is applicable to more general settings than theirs; in particular we do not rely on their monotonicity assumption and at the same time we also allow for multiple indices. To illustrate the advantage of our approach, we provide examples of models where our approach can identify parameters of interest whereas existing methods would fail. These examples include models with multiple unobserved disturbance terms such as the Roy model and multinomial choice models with dummy endogenous variables, as well as potential outcome models with endogenous random coefficients. Our method is easy to implement and can be applied to a wide class of models. We establish standard asymptotic properties such as consistency and asymptotic normality.

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27
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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
1Vytlacil and Yildiz (2007) Dummy Endogenous Variables in Weakly Separable Models1.000277100%
2Vuong and Xu (2017) Counterfactual mapping and individual treatment effects in nonseparable models with binary endogeneity0.73732100%
3Ahn, Powell, Ichimura, and Ruud (2017) Simple Estimators for Invertible Index Models0.51121100%
4Khan, Ouyang, and Tamer (2019) Inference in Semiparametric Mutinomial Response Models0.40511100%
5Ahn and Powell (1993) Semiparametric Estimation of Censored Selection Models0.40511100%
6Auerbach (2019) Identification and Estimation of a Partially Linear Regression Model using Network Data0.40511100%
7Chen, Khan, and Tang (2016) On the Informational Content of Special Regressors in Heteroskedastic Binary Response Models self0.40511100%
8Chen and Khan (2014) Semiparametric Estimation of Program Impacts on Dispersion of Potential Wages0.40511100%
9Chernozhukov and Hansen (2005) An IV Model of Quantile Treatment Effects0.40511100%
10D'Haultfoeuille and Fevrier (2015) Identification of Nonseparable Triangular Models with Discrete Instruments0.40511100%

Showing the top 10 of 27 scored citations.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Matching Points: Supplementing Instruments with Covariates in Triangular Models0.40511
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