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Inference on endogenously censored regression models using conditional moment inequalities

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Author Info
Khan, Shakeeb
Tamer, Elie
Abstract

Under a quantile restriction, randomly censored regression models can be written in terms of conditional moment inequalities. We study the identified features of these moment inequalities with respect to the regression parameters where we allow for covariate dependent censoring, endogenous censoring and endogenous regressors. These inequalities restrict the parameters to a set. We show regular point identification can be achieved under a set of interpretable sufficient conditions. We then provide a simple way to convert conditional moment inequalities into unconditional ones while preserving the informational content. Our method obviates the need for nonparametric estimation, which would require the selection of smoothing parameters and trimming procedures. Without the point identification conditions, our objective function can be used to do inference on the partially identified parameter. Maintaining the point identification conditions, we propose a quantile minimum distance estimator which converges at the parametric rate to the parameter vector of interest, and has an asymptotically normal distribution. A small scale simulation study and an application using drug relapse data demonstrate satisfactory finite sample performance.

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File URL: http://www.sciencedirect.com/science/article/B6VC0-4VD544R-1/2/896b7202c161c17559075e926fa2aa8d
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Publisher Info
Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 152 (2009)
Issue (Month): 2 (October)
Pages: 104-119
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Handle: RePEc:eee:econom:v:152:y:2009:i:2:p:104-119

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Web page: http://www.elsevier.com/locate/jeconom

For technical questions regarding this item, or to correct its listing, contact: (Heidi Boesdal).

Related research
Keywords: Conditional moment inequality models Quantile minimum distance Covariate dependent censoring Heteroscedasticity Endogeneity;

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