CFDP 1787R2

Identification in a Class of Nonparametric Simultaneous Equations Models

Author(s): 

Publication Date: March 2011

Revision Date: November 2013

Pages: 26

Abstract: 

We consider identification in a class of nonseparable nonparametric simultaneous equations models introduced by Matzkin (2008). These models combine standard exclusion restrictions with a requirement that each structural error enter through a “residual index” function. We provide constructive proofs of identification under several sets of conditions, demonstrating some of the available tradeoffs between conditions on the support of the instruments, restrictions on the joint distribution of the structural errors, and restrictions on the form of the residual index function.

Keywords: 

Simultaneous equations, Nonseparable models, Nonparametric identification