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Nonparametric Identification under Discrete Variation
Authors:Andrew Chesher
Abstract:This paper provides weak conditions under which there is nonparametric interval identification of local features of a structural function that depends on a discrete endogenous variable and is nonseparable in latent variates. The function delivers values of a discrete or continuous outcome and instruments may be discrete valued. Application of the analog principle leads to quantile regression based interval estimators of values and partial differences of structural functions. The results are used to investigate the nonparametric identifying power of the quarter‐of‐birth instruments used in Angrist and Krueger's 1991 study of the returns to schooling.
Keywords:Endogeneity  nonparametric models  discrete endogenous variables  partial identification  weak instruments  quantile regression  control function methods
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