Nonparametric identification in nonseparable panel data models with generalized fixed effects
Abstract
This paper extends the familiar notion of fixed effects to nonlinear structures with infinite-dimensional unobservables, like preferences. The main result is that a generalized version of differencing identifies local average responses (LARs) in nonseparable structures. In contrast to existing results, this does not require either substantial restrictions on functional form or independence between the persistent unobservables and the explanatory variables of interest, and it requires only two time periods. On the other hand, the results are confined to the subpopulation of “stayers” (Chamberlain, 1982), i.e., the population for which the explanatory variables do not change over time. We extend the basic framework to include time trends and dynamics in the explanatory variables, and we show how distributional effects as well as average partial effects are identified. Our approach also allows endogeneity in the transitory unobservables. Furthermore, we show that this new identification principle can be applied to well-known objects like the slope coefficient in the semiparametric panel data binary choice model with fixed effects. Finally, we suggest estimators for the local average response and average partial effect, and we analyze their large- and finite-sample behavior.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Econometrics.
Volume (Year): 168 (2012)
Issue (Month): 2 ()
Pages: 300-314
Contact details of provider:
Web page: http://www.elsevier.com/locate/jeconom
Related research
Keywords: Nonseparable models; Identification; Panel data; Semiparametric; Binary choice;Other versions of this item:
- Stefan Hoderlein & Halbert White, 2009. "Nonparametric identification in nonseparable panel data models with generalized fixed effects," CeMMAP working papers CWP33/09, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Stefan Hoderlein & Halbert White, 2009. "Nonparametric Identification in Nonseparable Panel Data Models with Generalized Fixed Effects," Boston College Working Papers in Economics 746, Boston College Department of Economics.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Shakeeb Khan & Maria Ponomareva & Elie Tamer, 2011.
"Identification of Panel Data Models with Endogenous Censoring,"
Working Papers
11-07, Duke University, Department of Economics.
- Khan, Shakeeb & Ponomareva, Maria & Tamer, Elie, 2011. "Identification of Panel Data Models with Endogenous Censoring," MPRA Paper 30373, University Library of Munich, Germany.
- Stefan Hoderlein & Yuya Sasaki, 2011. "On the role of time in nonseparable panel data models," CeMMAP working papers CWP15/11, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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