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Partial identification in nonseparable count data instrumental variable models
[Children and their parents’ labor supply: evidence from exogenous variation in family size]

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  • Dongwoo Kim

Abstract

SummaryThis paper investigates undesirable limitations of widely used count data instrumental variable models. To overcome the limitations, I propose a partially identifying single-equation model that requires neither strong separability of unobserved heterogeneity nor a triangular system. Sharp bounds (identified sets) of structural features are characterised by conditional moment inequalities. Numerical examples show that the size of an identified set can be very small when the support of an outcome is rich or instruments are strong. An algorithm for estimation and inference is presented. I illustrate the usefulness of the proposed model in an empirical application to effects of supplemental insurance on healthcare utilisation.

Suggested Citation

  • Dongwoo Kim, 2020. "Partial identification in nonseparable count data instrumental variable models [Children and their parents’ labor supply: evidence from exogenous variation in family size]," The Econometrics Journal, Royal Economic Society, vol. 23(2), pages 232-250.
    • Handle: RePEc:oup:emjrnl:v:23:y:2020:i:2:p:232-250.
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    File URL: http://hdl.handle.net/10.1093/ectj/utz025
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    Cited by:

    1. Nir Billfeld & Moshe Kim, 2024. "Context-dependent Causality (the Non-Nonotonic Case)," Papers 2404.05021, arXiv.org.

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