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Identification in Nonparametric Simultaneous Equations Models
Authors:Rosa L. Matzkin
Abstract:This paper provides conditions for identification of functionals in nonparametric simultaneous equations models with nonadditive unobservable random terms. The conditions are derived from a characterization of observational equivalence between models. We show that, in the models considered, observational equivalence can be characterized by a restriction on the rank of a matrix. The use of the new results is exemplified by deriving previously known results about identification in parametric and nonparametric models as well as new results. A stylized method for analyzing identification, which is useful in some situations, is also presented.
Keywords:Nonparametric methods  nonadditive models  nonseparable models  identification  simultaneous equations  endogeneity
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