Simultaneous equations in ordered discrete responses with regressor-dependent thresholds
AbstractThe parameters of ordered discrete response (ODR) models are identified only up to a positive scale. In this paper, we examine the identification issue for simultaneous equations with ODR, where the well-known identification problem in simultaneous equations of recovering structural-form parameters from reduced-form parameters is compounded with the ODR identification problem. We allow the thresholds in ODR to be regressor dependent as well as constant; the former is particularly challenging because threshold parameters get mixed with regression parameters, adding one more dimension to the identification problem. We also explore a cross-equation restriction on threshold differences, under which the structural form parameters are fully identified as if the dependent variables are continuously distributed. An empirical example with farm--household joint labour supply is provided to illustrate the identification issues, to show how our proposals work and to apply tests devised for the threshold constancy and cross-equation restrictions. Copyright 2005 Royal Economic Society
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Econometrics Journal.
Volume (Year): 8 (2005)
Issue (Month): 2 (07)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Changhui Kang & Myoung-jae Lee, 2010.
"Performance Of Various Estimators For Censored Response Models With Endogenous Regressors,"
Pacific Economic Review,
Wiley Blackwell, vol. 15(4), pages 447-463, October.
- Changhui Kang & Myoung-jae Lee, 2009. "Performance of Various Estimators for Censored Response Models with Endogenous Regressors," Discussion Paper Series 0905, Institute of Economic Research, Korea University.
- Ory, David Terrance, 2007. "Structural Equation Modeling of Relative Desired Travel Amounts," University of California Transportation Center, Working Papers qt7rb3x52m, University of California Transportation Center.
- Ory, David T, 2007. "Structural Equation Modeling of Relative Desired Travel Amounts," Institute of Transportation Studies, Working Paper Series qt8mj659fp, Institute of Transportation Studies, UC Davis.
- Myoung-jae Lee, 2008.
"Method-of-moment view of linear simultaneous equation systems,"
Netherlands Society for Statistics and Operations Research, vol. 62(2), pages 230-238.
- Myoung-jae Lee, 2007. "Method-of-Moment View of Linear Simultaneous Equation Systems," Discussion Paper Series 0719, Institute of Economic Research, Korea University.
- Myoung-jae Lee & Pao-Li Chang, 2007. "Avoiding arbitrary exclusion restrictions using ratios of reduced-form estimates," Empirical Economics, Springer, vol. 33(2), pages 339-357, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.