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Estimating Endogenous Effects on Ordinal Outcomes

Author

Listed:
  • Andrew Chesher

    (UCL and CeMMAP)

  • Adam M. Rosen

    (Duke University and CeMMAP)

  • Zahra Siddique

    (University of Bristol)

Abstract

We examine the use of instrumental variable (IV) methods to measure the effect of a ceteris paribus change in an endogenous variable on an ordered outcome. Specifically, we use these methods to investigate the effect of neighborhood characteristics on subjective well-being (SWB) among participants in the Moving to Opportunity (MTO) housing voucher experiment. We find that the estimated positive effect of a decrease in neighborhood poverty on SWB is sensitive to the specification of the first-stage auxiliary equation for endogenous neighborhood poverty. Our results highlight the influential role of control function restrictions in complete triangular models.

Suggested Citation

  • Andrew Chesher & Adam M. Rosen & Zahra Siddique, 2025. "Estimating Endogenous Effects on Ordinal Outcomes," The Review of Economics and Statistics, MIT Press, vol. 107(6), pages 1667-1683, November.
  • Handle: RePEc:tpr:restat:v:107:y:2025:i:6:p:1667-1683
    DOI: 10.1162/rest_a_01348
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    Cited by:

    1. Anastasia Gergenreter, 2026. "Estimation of treatment effects on ordinal variables in multivariate ordered choice models," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 81, pages 68-92.
    2. Andrew Chesher & Adam Rosen, 2020. "Econometric Modeling of Interdependent Discrete Choice with Applications to Market Structure," CeMMAP working papers CWP25/20, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    3. Aradillas-López, Andrés & Rosen, Adam M., 2022. "Inference in ordered response games with complete information," Journal of Econometrics, Elsevier, vol. 226(2), pages 451-476.
    4. Eleni Aristodemou, 2021. "A discrete choice model for partially ordered alternatives," CeMMAP working papers CWP35/21, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    5. Chesher, Andrew & Rosen, Adam M., 2020. "Generalized instrumental variable models, methods, and applications," Handbook of Econometrics, in: Steven N. Durlauf & Lars Peter Hansen & James J. Heckman & Rosa L. Matzkin (ed.), Handbook of Econometrics, edition 1, volume 7, chapter 0, pages 1-110, Elsevier.

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