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Partial identification in applied research: benefits and challenges

Author

Listed:
  • Kate Ho

    (Institute for Fiscal Studies)

  • Adam Rosen

    (Institute for Fiscal Studies and Duke University)

Abstract

Advances in the study of partial identification allow applied researchers to learn about parameters of interest without making assumptions needed to guarantee point identification. We discuss the roles that assumptions and data play in partial identification analysis, with the goal of providing information to applied researchers that can help them employ these methods in practice. To this end, we present a sample of econometric models that have been used in a variety of recent applications where parameters of interest are partially identified, highlighting common features and themes across these papers. In addition, in order to help illustrate the combined roles of data and assumptions, we present numerical illustrations for a particular application, the joint determination of wages and labor supply. Finally we discuss the benefits and challenges of using partially identifying models in empirical work and point to possible avenues of future research.

Suggested Citation

  • Kate Ho & Adam Rosen, 2015. "Partial identification in applied research: benefits and challenges," CeMMAP working papers CWP64/15, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:cemmap:64/15
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    3. Sam Asher & Paul Novosad & Charlie Rafkin, 2018. "Partial Identification of Expectations with Interval Data," Papers 1802.10490, arXiv.org.
    4. Choudhury, Sanchari, 2019. "WTO membership and corruption," European Journal of Political Economy, Elsevier, vol. 60(C).
    5. Wang, Zi, 2021. "Headquarters gravity: How multinationals shape international trade," Journal of International Economics, Elsevier, vol. 131(C).

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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

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