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Instrumental Variable Estimation of Nonlinear Errors-in-Variables Models

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Author Info
Susanne M Schennach
Abstract

This paper establishes that instruments enable the identification of nonparametric regression models in the presence of measurement error by providing a closed form solution for the regression function in terms of Fourier transforms of conditional expectations of observable variables. For parametrically specified regression functions, we propose a root n consistent and asymptotically normal estimator that takes the familiar form of a generalized method of moments estimator with a plugged-in nonparametric kernel density estimate. Both the identification and the estimation methodologies rely on Fourier analysis and on the theory of generalized functions. The finite-sample properties of the estimator are investigated through Monte Carlo simulations. Copyright The Econometric Society 2007.

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File URL: http://hdl.handle.net/10.1111/j.1468-0262.2007.00736.x
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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 75 (2007)
Issue (Month): 1 (01)
Pages: 201-239
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Handle: RePEc:ecm:emetrp:v:75:y:2007:i:1:p:201-239

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  1. Yingyao Hu and Geert Ridder, 2009. "Estimation of Nonlinear Models with Mismeasured Regressors Using Marginal Information," Economics Working Paper Archive 554, The Johns Hopkins University,Department of Economics. [Downloadable!]
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  2. Susanne Schennach & Halbert White & Karim Chalak, 2007. "Estimating average marginal effects in nonseparable structural systems," Boston College Working Papers in Economics 680, Boston College Department of Economics. [Downloadable!]
    Other versions:
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