arXiv 3 Apr 2023 · Econometrics
arXiv:2304.00678 · PDF · DOI · OpenAlex · Extracted main text
This paper studies semiparametric identification of substitution and complementarity patterns between two goods using a panel multinomial choice model with bundles. The model allows the two goods to be either substitutes or complements and admits heterogeneous complementarity through observed characteristics. I first provide testable implications for the complementarity relationship between goods. I then characterize the sharp identified set for the model parameters and provide sufficient conditions for point identification. The identification analysis accommodates endogenous covariates through flexible dependence structures between observed characteristics and fixed effects while placing no distributional assumptions on unobserved preference shocks. My method is shown to perform more robustly than the parametric method through Monte Carlo simulations. As an extension, I allow for unobserved heterogeneity in the complementarity, investigate scenarios involving more than two goods, and study a class of nonseparable utility functions.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | X. Shi, M. Shum, and W. Song (2018) Estimating semi-parametric panel multinomial choice models using cyclic monotonicity | 1.000 | 6 | 3 | 100% |
| 2 | A. Pakes and J. Porter (2022) Moment inequalities for multinomial choice with fixed effects | 0.928 | 5 | 4 | 80% |
| 3 | M. Gentzkow (2007) Valuing new goods in a model with complementarity: Online newspapers | 0.874 | 6 | 2 | 100% |
| 4 | R. Allen and J. Rehbeck (2022) Latent complementarity in bundles models | 0.737 | 3 | 2 | 100% |
| 5 | C. F. Manski (1987) Semiparametric analysis of random effects linear models from binary panel data | 0.737 | 3 | 2 | 100% |
| 6 | W. Y. Gao and M. Li (2020) Robust semiparametric estimation in panel multinomial choice models | 0.511 | 3 | 2 | 33% |
| 7 | B. E. Honoré and A. Lewbel (2002) Semiparametric binary choice panel data models without strictly exogeneous regressors | 0.511 | 2 | 1 | 100% |
| 8 | D. W. Andrews and X. Shi (2013) Inference based on conditional moment inequalities | 0.405 | 1 | 1 | 100% |
| 9 | T. B. Armstrong (2015) Asymptotically exact inference in conditional moment inequality models | 0.405 | 1 | 1 | 100% |
| 10 | S. Berry, J. Levinsohn, and A. Pakes (1995) Automobile prices in market equilibrium | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 29 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Semiparametric Discrete Choice Models for Bundles | 0.737 | 3 | 2 |
| 2 | Semiparametric Discrete Choice Models for Bundles | 0.585 | 3 | 1 |
| 3 | Bundle Choice Model with Endogenous Regressors: An Application to Soda Tax | 0.585 | 3 | 1 |