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Unconditional Quantile Partial Effects via Conditional Quantile Regression

Javier Alejo, Antonio F. Galvao, Julian Martinez-Iriarte, Gabriel Montes-Rojas

arXiv 18 Jan 2023 · Econometrics · publishedJournal of Econometrics (2024) · 8 citations (OpenAlex)

arXiv:2301.07241 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper develops a semi-parametric procedure for estimation of unconditional quantile partial effects using quantile regression coefficients. The estimator is based on an identification result showing that, for continuous covariates, unconditional quantile effects are a weighted average of conditional ones at particular quantile levels that depend on the covariates. We propose a two-step estimator for the unconditional effects where in the first step one estimates a structural quantile regression model, and in the second step a nonparametric regression is applied to the first step coefficients. We establish the asymptotic properties of the estimator, say consistency and asymptotic normality. Monte Carlo simulations show numerical evidence that the estimator has very good finite sample performance and is robust to the selection of bandwidth and kernel. To illustrate the proposed method, we study the canonical application of the Engel's curve, i.e. food expenditures as a share of income.

Citation extraction

48
references
81
in-text mentions
48
distinct cited
1
self-citations
12,274
main-text words

appendix boundary found by appendix_titled_section at “Appendix A” · 56% 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
1Firpo, Fortin, and Lemieux (2009) Unconditional Quantile Regression1.000154100%
2Chernozhukov, Fernández-Val, and Melly (2013) Inference on Counterfactual Distributions1.00083100%
3Koenker (2005) Quantile Regression0.8434475%
4Lee (2021) Nonparametric Weighted Average Quantile Derivative0.73732100%
5Koenker and Bassett (1978) Regression Quantiles0.64422100%
6Rothe (2010) Identification of Unconditional Partial Effects in Nonseparable Models0.64422100%
7Martinez-Iriarte, Montes-Rojas, and Sun (2022) Unconditional Effects of General Policy Interventions0.64422100%
8Angrist, Chernozhukov, and Fernández-Val (2006) Quantile Regression under Misspecification, with an Application to the U.S. Wage Structure0.51121100%
9Fortin, Lemieux, and Firpo (2011) Decomposition Methods in Economics0.51121100%
10Koenker, Chernozhukov, He, and Peng (2020) Handbook of Quantile Regression0.51121100%

Showing the top 10 of 48 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
1Structural Representations and Identification of Marginal Policy Effects0.73732
2Identification and Estimation of Unconditional Policy Effects of an Endogenous Binary Treatment: An Unconditional MTE Approach0.40511
3Unconditional Effects of General Policy Interventions0.40511