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Bounds on Average Effects in Discrete Choice Panel Data Models

Cavit Pakel, Martin Weidner

arXiv 17 Sep 2023 · Econometrics · 4 citations (OpenAlex)

arXiv:2309.09299 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In discrete choice panel data, the estimation of average effects is crucial for quantifying the effect of covariates, and for policy evaluation and counterfactual analysis. This task is challenging in short panels with individual-specific effects due to partial identification and the incidental parameter problem. In particular, estimation of the sharp identified set is practically infeasible at realistic sample sizes whenever the number of support points of the observed covariates is large, such as when the covariates are continuous. In this paper, we therefore propose estimating outer bounds on the identified set of average effects. Our bounds are easy to construct, converge at the parametric rate, and are computationally simple to obtain even in moderately large samples, independent of whether the covariates are discrete or continuous. We also provide asymptotically valid confidence intervals on the identified set.

Citation extraction

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appendix boundary found by appendix_titled_section at “Mathematical appendix” · 60% 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
1Chernozhukov, V., I. Fernández-Val, J. Hahn, and W. K. Newey (2013) Average and quantile effects in nonseparable panel models0.89911773%
2Davezies, L., X. D'Haultfuille, and L. Laage (2021) Identification and estimation of average marginal effects in fixed effects logit models0.8435360%
3Browning, M. and J. M. Carro (2010) Heterogeneity in dynamic discrete choice models0.84333100%
4Browning, M. and J. M. Carro (2014) Dynamic binary outcome models with maximal heterogeneity0.84333100%
5Bonhomme, S (2012) Functional differencing0.84333100%
6Dobronyi, C., J. Gu, K. i. Kim, and T. M. Russell (2024) Identification of dynamic panel logit models with fixed effects0.7373367%
7Aguirregabiria, V. and J. M. Carro (2021) Identification of average marginal effects in fixed effects dynamic discrete choice models0.73732100%
Browning and Carrounmatched citation key Browning and Carro0.64441100%
Chamberlainunmatched citation key Chamberlain0.64441100%
10Browning, M. and J. M. Carro (2007) Heterogeneity and microeconometrics modeling0.64422100%

Showing the top 10 of 98 scored citations. 2 of these could not be matched to a bibliography entry, so only the citation key is shown.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Identification of Average Marginal Effects in Fixed Effects Dynamic Discrete Choice Models0.64441
2Functional Differencing in Networks0.64422
3Treatment Evaluation at the Intensive and Extensive Margins0.64422
4Dynamic demand for differentiated products with fixed-effects unobserved heterogeneity0.51121
5Identification of time-varying counterfactual parameters in nonlinear panel models0.40511
6Approximate Functional Differencing0.40511
7Transition Probabilities and Moment Restrictions in Dynamic Fixed Effects Logit Models0.40511
8Moment Restrictions for Nonlinear Panel Data Models with Feedback0.40511
9Binary choice logit models with general fixed effects for panel and network data0.40511
10Approximate Operator Inversion for Average Effects in Nonlinear Panel Models0.40511