Lewbel, Arthur; Lu, Xun; Su, Liangjun - Department of Economics, Boston College - 2012
Consider a nonseparable model Y=R(X,U) where Y and X are observed, while U is unobserved and conditionally independent of X. This paper provides the first nonparametric test of whether R takes the form of a transformation model, meaning that Y is monotonic in the sum of a function of X plus a...