Control functions in nonseparable simultaneous equations models
نویسندگان
چکیده
The control function approach (Heckman and Robb (1985)) in a system of linear simultaneous equations provides a convenient procedure to estimate one of the functions in the system using reduced form residuals from the other functions as additional regressors. The conditions on the structural system under which this procedure can be used in nonlinear and nonparametric simultaneous equations has thus far been unknown. In this paper, we define a new property of functions called control function separability and show it provides a complete characterization of the structural systems of simultaneous equations in which the control function procedure is valid.
منابع مشابه
Identification and Estimation of Triangular Simultaneous Equations Models Without Additivity
This paper uses control variables to identify and estimate models with nonseparable, multidimensional disturbances. Triangular simultaneous equations models are considered, with instruments and disturbances independent and reduced form that is strictly monotonic in a scalar disturbance. Here it is shown that the conditional cumulative distribution function of the endogenous variable given the i...
متن کاملConditional Moment Restrictions and Triangular Simultaneous Equations∗
We examine whether a causal interpretation can be given to the function identified by the conditional moment restriction (CMR). It is shown that in a general nonseparable triangular system the CMR does not identify the average structural function (ASF) nor any other structural object. This implies that the CMR identifies a causal relation only if the model is structurally separable in observabl...
متن کاملCO2 Emissions, Health Expenditures and Economic Growth in Iran: Apply Dynamic Simultaneous-Equations Models
Introduction: The causal dynamics between environment, health expenditures and economic growth has recently started to be studied in the economics literature for both developing and developed countries. Methods: This study examines the causal relationship between CO2 emissions, health expenditures and economic growth using dynamic simultaneous-equations models for Iran over the period 1972-2...
متن کاملOn the Nonparametric Identification of Nonlinear Simultaneous Equations
This note revisits the identification theorems of B. Brown (1983) and Roehrig (1988). We describe an error in the proofs of the main identification theorems in these papers, and provide an important counterexample to the theorems on the identification of the reduced form. Specifically, contrary to the theorems, the reduced form of a nonseparable simultaneous equations model is not identified ev...
متن کاملOn the Nonparametric Identification of Nonlinear Simultaneous Equations Models: Comment on Brown (1983) and Roehrig (1988) by C. Lanier Benkard
This note revisits the identification theorems of Brown (1983) and Roehrig (1988). We describe an error in the proofs of the main identification theorems in these papers, and provide an important counterexample to the theorems on the identification of the reduced form. Specifically, the reduced form of a nonseparable simultaneous equations model is not identified even under the assumptions of t...
متن کامل