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cemmap Working Papers
September 2004 CWP11/04
Article
Identification in additive error models with discrete endogenous variables
Type: cemmap Working Papers
Authors: Andrew Chesher
ISSN: 1753-9196
Volume, issue, pages: 7 pp.

In additive error models with a discrete endogenous variable identification cannot be achieved under a marginal covariation condition when the support of instruments is sparse relative to the support of the endogenous variable.

An iterated covariation condition with a weak montonicity restriction is shown to have set identifying power.

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