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Distributional Effects in Censored Quantile Regressions with Endogeneity and Heteroskedasticity

Xi Wang

arXiv 22 Feb 2026 · Econometrics

arXiv:2602.19279 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Distributional effects, characterized by quantile frameworks, are well-known to capture heterogeneous impacts of economic factors across the unobserved relative ranks. Censored outcome, endogenous regressor and heteroskedastic error are prevalent in empirical work, yet challenge the consistency of existing quantile estimation methods. This paper develops a Sequential Control Function Censored Quantile (SCFCQ) estimator for distributional effects in censored quantile models with unbounded endogenous regressors. Our method combines the sequential analysis with the control function approach, particularly adapting for conditional heteroskedasticity in the endogenous regressor. The estimation algorithm is a two-step procedure composed of series quantile regressions, thereby providing applied researchers with a computationally tractable and practically feasible tool. We apply the SCFCQ method to estimate heterogeneous income elasticities over household preferences using data from the UK Family Expenditure Survey.

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44
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74
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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
1Chernozhukov, Victor and Fernández-Val, Iván and Kowalski, Amanda E (2015) Quantile regression with censoring and endogeneity1.00074100%
2Blundell, Richard and Powell, James L (2007) Censored regression quantiles with endogenous regressors0.87452100%
3Blundell, Richard and Chen, Xiaohong and Kristensen, Dennis (2007) Semi-nonparametric IV estimation of shape-invariant Engel curves0.87452100%
4Lee, Sokbae (2007) Endogeneity in quantile regression models: A control function approach0.87452100%
5Chen, Songnian (2018) Sequential estimation of censored quantile regression models0.73732100%
6Chernozhukov, Victor and Hong, Han (2002) Three-step censored quantile regression and extramarital affairs0.73732100%
7Powell, James L (1986) Censored regression quantiles0.73732100%
8Cattaneo, Matias D and Chandak, Rajita and Jansson, Michael and Ma,… (2024) Boundary adaptive local polynomial conditional density estimators0.64422100%
9Kowalski, Amanda (2016) Censored quantile instrumental variable estimates of the price elasticity of expenditure on medical care0.64422100%
10Lewbel, A (2006) Engel curves. The new Palgrave dictionary of economics0.64422100%

Showing the top 10 of 44 scored citations.