<p><p><p><p><p>Single equation instrumental variable models for discrete outcomes are shown to be set not point identifying for the structural functions that deliver the values of the discrete outcome. Identified sets are derived for a general nonparametric model and sharp set identification is demonstrated. Point identification is typically not achieved by imposing parametric restrictions. The extent of an identified set varies with the strength and support of instruments and typically shrinks as the support of a discrete outcome grows. The paper extends the analysis of structural quantile functions with endogenous arguments to cases in which there are discrete outcomes. </p> </p><p></p><p></p><p></p><p></p></p> </p><p></p><p></p><p></p><p></p>This paper is a revised version of the original issued in December 2008.</p></p></p></p></p>
Authors
Research Fellow University College London
Andrew is the Director of the ESRC Centre for Microdata Methods and Practice (cemmap) and Professor of Economics and Economic Measurement at UCL.
Working Paper details
- DOI
- 10.1920/wp.cem.2008.3008
- Publisher
- IFS
Suggested citation
Chesher, A. (2008). Instrumental variable models for discrete outcomes. London: IFS. Available at: https://ifs.org.uk/publications/instrumental-variable-models-discrete-outcomes (accessed: 26 April 2024).
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