<p>This paper studies the identifying power of conditional quantile restrictions in short panels with fixed effects. In contrast to classical fixed effects models with conditional mean restrictions, conditional quantile restrictions are not preserved by taking differences in the regression equation over time. This paper shows however that a conditional quantile restriction, in conjunction with a weak conditional independence restriction, provides bounds on quantiles of differences in time-varying unobservables across periods. These bounds carry observable implications for model parameters which generally result in set identification. The analysis of these bounds includes conditions for point identification of the parameter vector, as well as weaker conditions that result in identification of individual parameter components.</p>
Authors
Research Fellow Duke University
Adam is a Research Fellow associated with the Cemmap at the IFS and UCL and an Associate Professor of Economics at Duke University.
Working Paper details
- DOI
- 10.1920/wp.cem.2009.2609
- Publisher
- IFS
Suggested citation
Rosen, A. (2009). Set identification via quantile restrictions in short panels. London: IFS. Available at: https://ifs.org.uk/publications/set-identification-quantile-restrictions-short-panels (accessed: 20 May 2024).
Related documents
More from IFS
Understand this issue
Where next for the state pension?
13 December 2023
Social mobility and wealth
12 December 2023
Autumn Statement 2023: IFS analysis
23 November 2023
Policy analysis
The past and future of UK health spending
14 May 2024
Recent trends in and the outlook for health-related benefits
19 April 2024
Progression of nurses within the NHS
12 April 2024
Academic research
Keeping the peace whilst getting your way: Information, persuasion and intimate partner violence
17 May 2024
The role of hospital networks in individual mortality
13 May 2024
Leveraging edutainment and social networks to foster interethnic harmony
10 May 2024