CFDP 1482

On the Nonparametric Identification of Nonlinear Simultaneous Equations Models: Comment on B. Brown (1983) and Roehrig (1988)

Author(s): 

Publication Date: October 2004

Pages: 13

Abstract: 

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 even under the assumptions of those papers. We conclude the note with a conjecture that it may be possible to use classical exclusion restrictions to recover some of the key implications of the theorems.

Keywords: 

Simultaneous equations, Non-separable errors

JEL Classification Codes:  C14, C31

Note: 

Published in Econometrica (September 2006), 74(5): 1429-1440 [DOI]