IDEAS home Printed from https://ideas.repec.org/a/eee/econom/v161y2011i2p122-128.html
   My bibliography  Save this article

Tighter bounds in triangular systems

Author

Listed:
  • Jun, Sung Jae
  • Pinkse, Joris
  • Xu, Haiqing

Abstract

We study a nonparametric triangular system with (potentially discrete) endogenous regressors and nonseparable errors. Like in other work in this area, the parameter of interest is the structural function evaluated at particular values. We impose a global exclusion and exogeneity condition, in contrast to Chesher (2005), but develop a rank condition which is weaker than Chesher's. The alternative rank condition can be satisfied for binary endogenous regressors, and it often leads to an identified interval tighter than Chesher (2005)'s minimum length interval. We illustrate the potential of the new rank condition using the Angrist and Krueger (1991) data.

Suggested Citation

  • Jun, Sung Jae & Pinkse, Joris & Xu, Haiqing, 2011. "Tighter bounds in triangular systems," Journal of Econometrics, Elsevier, vol. 161(2), pages 122-128, April.
  • Handle: RePEc:eee:econom:v:161:y:2011:i:2:p:122-128
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304-4076(10)00226-5
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andrew Chesher, 2003. "Identification in Nonseparable Models," Econometrica, Econometric Society, vol. 71(5), pages 1405-1441, September.
    2. Guido W. Imbens & Whitney K. Newey, 2009. "Identification and Estimation of Triangular Simultaneous Equations Models Without Additivity," Econometrica, Econometric Society, vol. 77(5), pages 1481-1512, September.
    3. Charles F. Manski & Elie Tamer, 2002. "Inference on Regressions with Interval Data on a Regressor or Outcome," Econometrica, Econometric Society, vol. 70(2), pages 519-546, March.
    4. Jun, Sung Jae, 2009. "Local structural quantile effects in a model with a nonseparable control variable," Journal of Econometrics, Elsevier, vol. 151(1), pages 82-97, July.
    5. Sung Jae Jun & Joris Pinkse & Haiqing Xu, 2012. "Discrete endogenous variables in weakly separable models," Econometrics Journal, Royal Economic Society, vol. 15(2), pages 288-303, June.
    6. Whitney K. Newey & James L. Powell & Francis Vella, 1999. "Nonparametric Estimation of Triangular Simultaneous Equations Models," Econometrica, Econometric Society, vol. 67(3), pages 565-604, May.
    7. Ma, Lingjie & Koenker, Roger, 2006. "Quantile regression methods for recursive structural equation models," Journal of Econometrics, Elsevier, vol. 134(2), pages 471-506, October.
    8. Joshua D. Angrist & Alan B. Keueger, 1991. "Does Compulsory School Attendance Affect Schooling and Earnings?," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 979-1014.
    9. Edward Vytlacil & Nese Yildiz, 2007. "Dummy Endogenous Variables in Weakly Separable Models," Econometrica, Econometric Society, vol. 75(3), pages 757-779, May.
    10. Andrew Chesher, 2005. "Nonparametric Identification under Discrete Variation," Econometrica, Econometric Society, vol. 73(5), pages 1525-1550, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefan Hoderlein & Yuya Sasaki, 2013. "Outcome conditioned treatment effects," CeMMAP working papers CWP39/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    2. Christoph Rothe, 2012. "Partial Distributional Policy Effects," Econometrica, Econometric Society, vol. 80(5), pages 2269-2301, September.
    3. Andrew Chesher & Konrad Smolinski, 2010. "Sharp identified sets for discrete variable IV models," CeMMAP working papers CWP11/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    4. Kédagni, Désiré & Mourifié, Ismael, 2014. "Tightening bounds in triangular systems," Economics Letters, Elsevier, vol. 125(3), pages 455-458.
    5. Wooyoung Kim & Koohyun Kwon & Soonwoo Kwon & Sokbae Lee, 2014. "The identification power of smoothness assumptions in models with counterfactual outcomes," CeMMAP working papers CWP17/14, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    6. Andrew Chesher & Adam Rosen, 2012. "Simultaneous equations for discrete outcomes: coherence, completeness, and identification," CeMMAP working papers CWP21/12, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    7. Kasy, Maximilian, "undated". "Instrumental variables with unrestricted heterogeneity and continuous treatment - DON'T CITE! SEE ERRATUM BELOW," Working Paper 33257, Harvard University OpenScholar.
    8. Lee, Jinhyun, 2013. "Sharp Bounds on Heterogeneous Individual Treatment Responses," SIRE Discussion Papers 2013-89, Scottish Institute for Research in Economics (SIRE).
    9. Maximilian Kasy, 2014. "Instrumental Variables with Unrestricted Heterogeneity and Continuous Treatment," Review of Economic Studies, Oxford University Press, vol. 81(4), pages 1614-1636.
    10. Jinhyun Lee, 2013. "Sharp Bounds on Heterogeneous Individual Treatment Responses," Discussion Paper Series, Department of Economics 201310, Department of Economics, University of St. Andrews.
    11. Sung Jae Jun & Joris Pinkse & Haiqing Xu & Nese Yildiz, 2012. "Identification of treatment effects in a triangular system of equations," Department of Economics Working Papers 130910, The University of Texas at Austin, Department of Economics, revised Oct 2012.
    12. repec:eee:econom:v:201:y:2017:i:2:p:249-268 is not listed on IDEAS
    13. repec:gam:jecnmx:v:4:y:2016:i:1:p:7:d:63449 is not listed on IDEAS
    14. Sung Jae Jun & Joris Pinkse & Haiqing Xu & Neşe Yıldız, 2016. "Multiple Discrete Endogenous Variables in Weakly-Separable Triangular Models," Econometrics, MDPI, Open Access Journal, vol. 4(1), pages 1-21, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:econom:v:161:y:2011:i:2:p:122-128. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/jeconom .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.