Partial Identification of Distributional Parameters in Triangular Systems

49 Pages Posted: 9 Nov 2014

See all articles by Ju Hyun Kim

Ju Hyun Kim

University of North Carolina (UNC) at Chapel Hill

Date Written: November 7, 2014

Abstract

I study partial identification of distributional parameters in triangular systems. This model consists of a nonparametric outcome equation and a selection equation. This allows for general unobserved heterogeneity and selection on unobservables. The distributional parameters considered in this paper are the marginal distributions of potential outcomes, their joint distribution, and the distribution of treatment effects. I investigate how different types of plausible restrictions contribute to identifying these parameters. The restrictions I consider include stochastic dominance and quadrant dependence between unobservables and monotonicity between potential outcomes. My identification applies to the whole population without a full support condition on instrumental variables and does not rely on rank similarity. I also provide numerical examples to illustrate the identification power of each assumption.

Keywords: Partial Identi cation, Triangular Systems, Stochastic Monotonicity, Monotone Treatment Response, Quadrant Dependence

JEL Classification: C14, C21, C61, C81

Suggested Citation

Kim, Ju Hyun, Partial Identification of Distributional Parameters in Triangular Systems (November 7, 2014). Available at SSRN: https://ssrn.com/abstract=2520620 or http://dx.doi.org/10.2139/ssrn.2520620

Ju Hyun Kim (Contact Author)

University of North Carolina (UNC) at Chapel Hill ( email )

102 Ridge Road
Chapel Hill, NC NC 27514
United States

HOME PAGE: http://www.unc.edu/depts/econ/profiles/Kim.htm

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